Drawdown - futures io
futures io futures trading


Drawdown

Drawdown is most commonly used to refer to the high-to-low decline experienced by a trader or fund over a specified time period.



In general drawdown is quoted as a percentage, for example if $100,000 was a trader's account high point but after a series of bad trades this dropped to $80,000 this would constitute a drawdown of 20%. Drawdown is measured from the time a retrenchment begins until a new high is reached, which is why you will often hear people referring to the max historic drawdown. Maximum drawdown is the amount of equity lost by a trader or fund during its entire history. For instance a trader may have recently experienced a 20% drawdown, but in the past he could have experienced much more significant drawdown. The biggest historic drawdown is referred to as the maximum drawdown.

Source (with edits): http://thefxview.com/2013/09/30/drawdown-explained/

See also:

http://www.investopedia.com/terms/d/drawdown.asp

http://www.babypips.com/school/under...-drawdown.html
Attached Images
Register to download File Type: png drawdown.png (5.6 KB, 77 views)
Page Tools
Search this Page


All times are GMT -4. The time now is 05:59 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
Page generated 2017-12-11 in 0.08 seconds with 20 queries on phoenix via your IP 54.82.79.109