What is the difference between Maximal draw down and Relative draw down? Why draw down is different between list and graph? - page 2
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Thank you, Eleni.
But sorry, I'm confused, then in what kind of case they should be different?
Thank you so much, Icham.
>> Relative Drawdown: Shows the "Maximum Drawdown" expressed as a percentage of initial deposit.
What is the meaning of the value for Relative Drawdown? In Test 2 displayed below, my deposit is 3,000, the Relative Drawdown is 28.98% and its value is 156,975.16.
If Relative Drawdown: Shows the "Maximum Drawdown" expressed as a percentage of initial deposit, the value of Relative Drawdown must smaller than initial deposit.
But in my test, Relative Drawdown is always higher than my initial deposit.
Test 2
To make it short, all kind of drawdowns are important in a backtest, I look at the highest and make sure that isn't above my expectations and projections.
To make it short, all kind of drawdowns are important in a backtest, I look at the highest and make sure that isn't above my expectations and projections.
Thank you, Eleni.
Exactly, all kind of drawdowns are important in a backtest.
Thank you so much, Icham.
>> Relative Drawdown: Shows the "Maximum Drawdown" expressed as a percentage of initial deposit.
What is the meaning of the value for Relative Drawdown? In Test 2 displayed below, my deposit is 3,000, the Relative Drawdown is 28.98% and its value is 156,975.16.
If Relative Drawdown: Shows the "Maximum Drawdown" expressed as a percentage of initial deposit, the value of Relative Drawdown must smaller than initial deposit.
But in my test, Relative Drawdown is always higher than my initial deposit.
Test 2
Well, the initial deposit isn't the initial balance - your balance grows.
That one for example, has reached 29%dd when your balance was approx 542000 : 29%*542000 = 157000
To make it short, all kind of drawdowns are important in a backtest, I look at the highest and make sure that isn't above my expectations and projections.
yes that way ... more than 30% is worrying :/ risky first, but above all it testifies of a fail of the ea's exit algo
yes that way ... more than 30% is worrying :/ risky first, but above all it testifies of a fail of the ea's exit algo
Thank you for your continuing support, Icham.
I'm not a English native, so I always misunderstand something.
What do you mean "above all it testifies of a fail of the ea's exit algo"?
Is that mean if the DD is more than 30%, it should be risky and we have to make sure the algo again?
Thank you for your continuing support, Icham.
I'm not a English native, so I always misunderstand something.
What do you mean "above all it testifies of a fail of the ea's exit algo"?
Is that mean if the DD is more than 30%, it should be risky and we have to make sure the algo again?
The lowest the dd the better it is - for sure you understood that.
30% is good but that drawdown if it hits the stop becomes a loss <-> for 1 000 000$, 30% is 300 000$ - it's not nothing - so one may wish to reduce the drawdown even more.
So if you're looking a lower drawdown (10-20%) while it's reaching 30% on your board then it may be a fail of the exit strategy : a stoploss missing due to lag, vps disconnection, or gaps between session
The lowest the dd the better it is - for sure you understood that.
30% is good but that drawdown if it hits the stop becomes a loss <-> for 1 000 000$, 30% is 300 000$ - it's not nothing - so one may wish to reduce the drawdown even more.
So if you're looking a lower drawdown (10-20%) while it's reaching 30% on your board then it may be a fail of the exit strategy : a stoploss missing due to lag, vps disconnection, or gaps between session
Thank you, Icham. I got it.
Where do you get high quality test data?
Thank you, Icham. I got it.
Where do you get high quality test data?
As I remember, there's a soft called tickstory for MT4.
And for MT5, brokers' data are often of good quality.