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  • #117265 |
    41 Posts

    Because we are trading with indicators/trading trends, our winning trades are likely to follow a general pattern of hitting a peak and subsequently losing back some profits before exiting the trade.


    This has the effect of calculating drawdown from the peak of winning trades, which magnifies drawdown.


    For example, if we have a system that takes profit at 100 pips and the slop-loss is 50 pips, if a trade reaches a profit of 90 pips, but then reverses and hits the stop-loss, the “drawdown” on this trade will be nearly three times the amount of a trade that simple heads straight for the stop-loss.


    I would like to see a “closed equity drawdown,” which would only calculate drawdown after the trade has closed.

    2349 Posts



    SQ drawdown represents closed trades drawdown. You can see Maximum Favorable Excursion (MFE) and the MAE Maximum Adverse Excursion (MAE) in the trade list

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    309 Posts

    N j n mi nnjnaei kín in. Ja n m i. Iní, nj nj jjninnnonk?? (&

    Odoslané z G3121 pomocou Tapatalku

    41 Posts

    Wow, I was just thinking exactly the same thing!


    It’s nice to know someone else has the same troubles with clarity of thought as I do.

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