What is the difference between Maximal draw down and Relative draw down? Why draw down is different between list and graph?

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Dear experienced traders,


I'm testing an EA, and I have some problem need you help. 

1. Do you know what is the difference between Maximal draw down and Relative draw down?

2. The draw down shows in the graph is around 5,100,000 – 4,680,000 = 420,000. And the draw down in the list is 344,964.66.

    Why draw down is different between list and graph? 


Thank you in advance and best wishes,

Sky



 
I think the maximal draw down should be the most loss trade and the relative draw down should be the maximum float loss, let me know if I'm wrong. 
 
I think it the minimum equity with respect to the maximum equity before losing
 
Sky L:

Dear experienced traders,


I'm testing an EA, and I have some problem need you help. 

1. Do you know what is the difference between Maximal draw down and Relative draw down?

2. The draw down shows in the graph is around 5,100,000 – 4,680,000 = 420,000. And the draw down in the list is 344,964.66.

    Why draw down is different between list and graph? 


Thank you in advance and best wishes,

Sky




https://www.mql5.com/en/articles/1486


  • Absolute drawdown is the difference between the initial deposit and the smalles value of equity within testing:

    AbsoluteDrawDown = InitialDeposit - MinimalEquity

  • Maximal drawdown is the highest difference between one of local upper extremums of the equity graph and the following lower extremums:

    MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak)

    The basic stages of changing the maximal drawdown value within testing are given in the picture below. The total maximal drawdown value is in the thick arrows.

  • The maximal drawdown percentage shows the ratio between the maximal drawdown and the value of respective local upper extremum (of equity):
MaxDrawDown % = MaxDrawDown / its MaxPeak * 100%
 
AHMED MOHAMED ALY ISMAIL:
I think it the minimum equity with respect to the maximum equity before losing

Thank you, Ahmed! 

 
Eleni Anna Branou:


https://www.mql5.com/en/articles/1486


  • Absolute drawdown is the difference between the initial deposit and the smalles value of equity within testing:

    AbsoluteDrawDown = InitialDeposit - MinimalEquity

  • Maximal drawdown is the highest difference between one of local upper extremums of the equity graph and the following lower extremums:

    The basic stages of changing the maximal drawdown value within testing are given in the picture below. The total maximal drawdown value is in the thick arrows.

  • The maximal drawdown percentage shows the ratio between the maximal drawdown and the value of respective local upper extremum (of equity):
MaxDrawDown % = MaxDrawDown / its MaxPeak * 100%

Thank you so much, Eleni. 

But I still can not understand what is the difference between Maximal draw down and Relative draw down. I find a article, but for my English, they are the same... 

Do you have any example to show the difference? Does Maximal drawdown mean real loss, and Relative drawdown mean float loss? 

https://www.metatrader4.com/en/trading-platform/help/autotrading/tester/tester_results

Maximal drawdown – the largest loss of the local maximum in the deposit currency and in per cents of the deposit;

Relative drawdown – the maximal loss in percents of the maximum equity value and its corresponding money value;

 
Sky L:

Thank you so much, Eleni. 

But I still can not understand what is the difference between Maximal draw down and Relative draw down. I find a article, but for my English, they are the same... 

Do you have any example to show the difference? Does Maximal drawdown mean real loss, and Relative drawdown mean float loss? 

https://www.metatrader4.com/en/trading-platform/help/autotrading/tester/tester_results

Maximal drawdown – the largest loss of the local maximum in the deposit currency and in per cents of the deposit;

Relative drawdown – the maximal loss in percents of the maximum equity value and its corresponding money value;

As relative drawdown has to do with equity, yes.

 
Eleni Anna Branou:

As relative drawdown has to do with equity, yes.

Thank you so much, Eleni. 

 
Eleni Anna Branou:

As relative drawdown has to do with equity, yes.

Dear Eleni, 

In my test, my balance was increase, why Maximal drawdown and Relative drawdown could be same?

And why draw down is different between list and graph?

 
Sky L:

Dear Eleni, 

In my test, my balance was increase, why Maximal drawdown and Relative drawdown could be same?

And why draw down is different between list and graph?

Because in many cases the relative and maximal drawdown of a test's result can be the same.

 
Eleni Anna Branou:

Because in many cases the relative and maximal drawdown of a test's result can be the same.

Thank you, Eleni. 

But sorry, I'm confused, then in what kind of case they should be different? 

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