NexusFi: Find Your Edge


Home Menu

 





Max drawdown explanation nt8


Discussion in Psychology and Money Management

Updated
    1. trending_up 2,006 views
    2. thumb_up 1 thanks given
    3. group 2 followers
    1. forum 2 posts
    2. attach_file 0 attachments




 
Search this Thread
  #1 (permalink)
lorenzoP
venice
 
Posts: 18 since Feb 2017
Thanks Given: 0
Thanks Received: 3

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


Reply With Quote

Can you help answer these questions
from other members on NexusFi?
April CPI Preview: +3.7% YoY Expected at 8:30 AM ET -- C …
Traders Hideout
The 50/50 Paradox: Peace and Invasion Each at 20% -- Ira …
Prediction Markets & Event Contracts
Iran Peace Expired NO: Ceasefire on Life Support, OPEC a …
Prediction Markets & Event Contracts
Day 96 Missiles Hit Kuwait and Bahrain: June 15 Peace at …
Prediction Markets & Event Contracts
GDP Day: The First Economic Reckoning -- Pahlavi at 6.55 …
Prediction Markets & Event Contracts
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
NexusFi site changelog and issues/problem reporting
6 thanks
Darmok and Jalad at Tanagra
1 thanks
  #3 (permalink)
 iantg 
charlotte nc
 
Experience: Advanced
Platform: My Own System
Posts: 409 since Jan 2015
Thanks Given: 91
Thanks Received: 1,154


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


Visit my NexusFi Trade Journal Reply With Quote
Thanked by:




Last Updated on November 2, 2017


© 2026 NexusFi®, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top
no new posts