Max drawdown explanation nt8

May 18th, 2017, 02:40 PM

Hi, i have a strategy which give me as higher maximum drawdown 0.14, what does this means? if i use a 1 : 100 leverage, would i lose all my money in that day (0.14 * 100)? (daily net profit is always positive)

sorry for stupid question

November 2nd, 2017, 11:14 PM

Some software systems have a built in starting account balance in SIM. Let's say $100K. So it might be reporting draw downs as a percentage of this. 15% for example would be $15k. Most systems will let you pick the way you view this. I always prefer dollars. Because dollars tell me how much money is actually being lost, whereas with a percentage you have to figure out what your account balance was in SIM first, then do the calculation.

Ian

Max drawdown explanation nt8

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Max drawdown explanation nt8