Tester: What the Numbers in the Expert Testing Report Mean - page 2

[Angel Del Olmo]

Hi:

 The following sentence is not true "Maximal drawdown is the highest difference between one of local upper extremums of the balance graph and the following lower extremums:" 

In my case, the  maximal drawdown is calculated based on equity graph, and not based on balance graph.

 

You can find the correct definition in MetaTrader 4 Help: https://www.metatrader4.com/en/trading-platform/help/autotrading/tester/tester_results

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

 

 Why people write articles with misinformation?

AOR 

[MOHD FAUZI RAMLI]

Hi,

Drawdown (%) = 100% * (former Balance - later Balance) / (former Balance)

                               where former Balance > later Balance 

Therefore, Maximal Drawdown can be determined when (later Balance / former Balance)~0

[Agustinus Biotamalo Lumbantoruan]

nice article. Thank you!

Which is more important...Relative Drawdown or Maximal Drawdown?