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Max drawdown explanation nt8


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  #1 (permalink)
lorenzoP
venice
 
Posts: 18 since Feb 2017
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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


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  #3 (permalink)
 iantg 
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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


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Last Updated on November 2, 2017


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