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It was around the time my account was at $27600 so to stay below 5% DD the draw down amount should have stayed smaller than $1380. I am quite sure i did not exceed that.
Can you help answer these questions from other members on NexusFi?
If this is earn2trade we are talking about, I think what he meant by DD is how far below the starting 25k did you go (not the high watermark thing we had in OneUP and TST). Your stats look pretty awesome btw cheers
They do not have a trailing draw down however i do believe they calculate the draw down regarding the offer from the high watermark, at least that would make the most sense to me.
The way I interpreted the 4:1 profit to risk ration is that at end of evaluation you calculate your net profit and your drawdown from the start of balance to compare the two. Is this not the way it's calculated?
In my understanding draw down is calculated from the highest point of your account to the recent low.
So for example if you had a balance of $27500 and you go down to $26000 you then have a current draw down of 5,45%.
Earn2Trade has a 10% non trailing draw down, which means that once you go below $22500 you lost the account and the draw down never rises with the profits you have made.
However to calculate the draw down level over a certain period of time you always calculate from the highest point to the lowest point you then ended up next. This does not affect the shut down draw down Earn2Trade has, which is fixed at $22500, but it does matter to the kind of offer you will receive.
It would absolutely make no sense to only calculate a draw down from the initial starting balance. 4:1 profit to risk just means that your return % is 4 times grater than the DD %.
You can ask them to be sure. But from what I remember asking before, it is from the initial drop from 25k. You noticed in their old letter of offer, they had 2 kinds of DD? (1 is from 25k balance and 1 is from the high watermark). Now the new letters seem to have scrapped the stats for high watermark (how much % drop trailing DD).
Tbh that's what I asked before and was told. The one RDK91 mentions is called the trailing DD (calculated from high watermark aka intraday peaks) and they used to post that in the old letters of offer, though they scrapped it in the new letters.
It makes sense because most people will just stop at 2.5k profit and only scalp maybe 1 or 2 ticks to fill the 30 days and the 1:4 R:R: refund thing is meant as incentive to discourage that I know this because I am one of those and I know others who would do that too =)
I will ask them to be sure however i am 99% sure it is the way i desribed it, otherwise i would still be at 0% DD since i never went below the 25K starting balance yet i had a almost 1K losing day.
You can not calculate a draw down from the initial starting balance alone otherwise i will stay at 0% probably forever in my current account.
How does that even makes sence if one never went below the initial starting balance like i did? My current profit to draw down ratio is now 4000:1? Impossible
Wow, you never went below the 25k start? Which means the trade was profitable right from the start? That's amazing.
And yes, do ask them why there used to be 2 kinds of drawdown and now suddenly there is only one in the letter of offer. I remember this cos someone posted in my fb and explained the terms to us (I think it was a She who got funded). Her trailing DD was bad, but her DD (no mention of trailing) was better. That was before they came up with the refund offer though