Market theory - page 81

 
Алексей:

Yusuf, I don't believe it. Your trades - I repeat - have been hovering for a long time, and you can tell by the smoothness of the chart. I would not be surprised if some trades have been hanging around for six months or more. You show the drawdown on closed positions. The question remains - how many points of drawdown may accumulate in the worst case with open orders?

I was making a similar chart using a strategy similar to yours and I got also about 100-200 points of drawdown and 95% of profitable trades. But when I calculated the drawdown on open trades in the same excel, the rose-coloured glasses flew off instantly, as the FS became small.

What kind of drawdown would you consider acceptable?
 
khorosh:
What kind of drawdown do you think is acceptable?
What do you think the drawdown is in this question?
 
Алексей:
What do you think of the drawdown in this question?
In % of the initial deposit.
 
khorosh:
In % of the initial deposit.
And if initial deposit is 1000$, balance 10000 and drawdown 2000 - what is the drawdown?
 
Daniil Stolnikov:
If initial deposit is 1000$, balance is 10000 and drawdown is 2000 - what is the drawdown?
If the drawdown is calculated as a percentage of the initial deposit, it is 200%. It makes sense to assess the drawdown percentage of the initial deposit because this drawdown can happen right after launching the Expert Advisor, when it has not yet earned anything. This is on condition of trading with a fixed lot.
 
khorosh:
If we estimate the drawdown as a percentage of the initial deposit, we get 200%. It makes sense to estimate the drawdown as a percentage of the initial deposit, because such a drawdown can happen immediately after launching the Expert Advisor, when it has not yet earned anything. This is on condition of trading with a fixed lot.
In this case, everything is correct! But it's not quite right... although...
 
Алексей:

Yusuf, I don't believe it. Your trades - I repeat - have been hovering for a long time, and you can tell by the smoothness of the chart. I would not be surprised if some trades have been hanging around for six months or more. You show the drawdown on closed positions. The question remains - how many points of drawdown may accumulate in the worst case with open orders?

I was making a similar chart using a strategy similar to yours and I got also about 100-200 points of drawdown and 95% of profitable trades. But when I calculated the drawdown on open trades in the same excel, the rose-coloured glasses flew off instantly, as the FS became small.

See how the algorithm frantically searches for a trend https://www.mql5.com/ru/forum/58256/page82#comment_1653512 When such frequent changes of trading direction are occurring large drawdowns are basically excluded, as we cut losses at once at changes of trading direction not affecting profitable positions. We have long trends but they come in handy as drawdowns are excluded. Equity is always higher than the balance at these points. If the algorithm loses equity, it actually loses its own earned money, not the equity of the deposit. Do you understand the difference? Therefore, those 2000 points I have cited are relative drawdowns. The drawdown of 500 points is allowed by the algorithm at the stage of acceleration, and then it is not affected by any drawdown. You do not believe because you have not encountered such self-regulating, self-controlling automatic systems until now. The algorithm simply fits into the controlling mechanism of the market and saves and builds up profits on its own, getting rid of substantial losses in time and taking losses. I think I explained it somehow. If I do not understand you, I will explain more. I think that if there is a grail, this system is one of them. The mechanism that controls the market controls profit, of course, not without errors.
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Цопт - оптимальная цена, позволяющая получить максимальную прибыль;. - Страница 82 - Категория: общее обсуждение
 
Yousufkhodja Sultonov:
See how the algorithm frantically searches for the trend https://www.mql5.com/ru/forum/58256/page82#comment_1653512. In order to assess the frequency of changes of trading direction I have placed there a graph "Buy-Sell". At such frequent changes of trading direction, in principle, large drawdowns are excluded, because we cut losses immediately when changing the trading direction, not touching profitable positions. We have long trends but they come in handy as drawdowns are excluded. Equity is always higher than the balance at these points. If the algorithm loses equity, it actually loses its own earned money, not the equity of the deposit. Do you understand the difference? Therefore, those 2000 points I have cited are relative drawdowns. The drawdown of 500 points is caused by the algorithm at the stage of acceleration. You don't believe because you haven't encountered such self-regulating, self-regulating automatic systems until now. The algorithm simply fits into the controlling mechanism of the market and saves and builds up profits on its own, getting rid of substantial losses in time and taking losses. I think I explained it somehow. If I do not understand, I will explain more.
This raises the question - why do we need a system at all? After all, you can "just haphazardly" open in any direction and self-regulate - when losses are incurred - close, when profits are taken - let them grow.
 
Daniil Stolnikov:
This raises the question: why do we need a system at all? After all, you can "out of the blue" and open in any direction and self-regulate - when you make a loss, you close, when you make a profit, you let it grow.
This is the system! You have not clearly described the principle of the system. It will become a full-fledged ATC, if you refuse to "just from the ball", and introduce a reasonable logic.
 
Yousufkhodja Sultonov:
This is the system! You have not noticeably described how the system works. It will become a full-fledged ATS, if you refrain from "out of the box", and introduce a reasonable logic.
So far, I see a description of the mythical self-regulating grail with some "logic" that can make mistakes ))