Explained here https://www.mql5.com/en/articles/1486.
Hello to all.
After backtesting a strategy, the system shows the "STRATEGY TESTER REPORT".
Is there any user who can explain to me how the absolute drawdown, the maximum drawdown and the relative drawdown are calculated?
Using Excell, what is the formula that the system used to calculate the value of the three Drawdown parameters?
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How to calculate the maximal draw down truely ? Where Max draw down is based on Equity or balance ?
Why the rules:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak); and
MaxDrawDown % = MaxDrawDown / its MaxPeak * 100% ;why these rules are differents of the max drawdown displayed on tester report ? (if that was computed in Excel or manualy)