How do you filter strategies that exhaust your capital?

Reviewing trade detail, I noticed some strategies that pass testing may actually go negative balance within the trade list. How do I filter for that? Going negative, no matter the final outcome, actually means I wiped out the account (initial capital + any profits) and the strategy is not viable.

Hi,

you need to evaluate drawdown for your strategy. You will never start trading with zero balance on your account so the drawdown metric can help you here. We have 3 types available

1. actual drawdown – this shows whether a strategy is currently in a drawdown
2. drawdown – this value tells you what was the maximum account historical drop
3. open drawdown – it is the same as previous but includes daily equity fluctuations (open PnL)

tomas, you’re the man, dude!