Reduce drawdowns to a minimum! Any ideas? - page 3

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Dmitriy Ermolaev:
How to reduce the drawdown? I want new ideas)
There is 1 proven way.
Take 10k quid, open no more than 1 trade with 0.01 per month. )
 
Ramiz Mavludov:
There is 1 proven way.
Take 10k quid, open no more than 1 trade with 0.01 per month. )
Well, you can open it with a deposit of $1000. What will you do with it within next 5-10 years? I am not even asking about profitability).
 

How to calculate drawdown in excel or php ?

Need absolute drawdown and relative drawdown

 

-Aleks-:
Тогда советы выше мной даны именно под эту ситуацию.

Thank you very much!
 
Vitaly Muzichenko:

I monitored one PAMM here, it seemed to be going well for a year, I did not use stops, I kept trading through the drawdown, sometimes I even added to it according to the movement. Then, at one point with the pound, there was a mishap, positions were on some pounds

For the whole year there were profits, the account was growing, though shakily, but it was growing:

And this is a good thing, that the manager had the courage to close the losses on time, instead of waiting for the fabulous pullbacks, and meanwhile continue to take scanty profits, hoping to make the account break-even.

He writes in his blog,"The collapse of the pound hit the account hard. The near future will be devoted to recovery."

Now the account is in the same situation, which means the manager hasn't learned anything

Now the question is: How do we reduce drawdowns, if we sit and deliberately increase the losses?

If the price has gone the wrong way, that's it, you need to cover positions while the loss is tiny, rather than wait until the account has fallen to the original ... at worst, to a stop-out.

Trading result for the year:

You can see here that stops are Evil in the eyes of the manager, but to incur a one-time loss equal to half a year's earnings, it's NORMAL!

In general, everything about minimising losses is about closing a small loss in time, before it turns into a super loss for half an account.

Yes the pound spoiled the picture for many. In the morning.
 
Vitaliy Boyko:

You should also not trade on pairs with big drawdowns.

I traded 28 pairs at the beginning and you may imagine drawdowns. After 5 years I stopped trading only 3 pairs and I don't see drawdowns more than 2%.

Thanks for the tip about GBP. What pairs have you kept? If it is not the author's secret of course. Thank you.
 
Dmitriy Ermolaev:

By the way, Vladimir Pastushak has a script, which allows you to analyse the lost profit on closed positions - my idea, but he implemented it, but (which is critical for me) for the correct work requires a history of minutes.


 
Vitaly Muzichenko:
Well, you can open it with a deposit of $1000. What to do with it within next 5-10 years? I am not even asking about profitability).
Next we will rejoice in immortal strategy))))
By the way, you can enter the 5% of traders who have not plummeted and earn their 5-10% a year).
 
Ramiz Mavludov:
Next we will enjoy the immortal strategy))))
By the way it's possible to enter 5% of traders who did not plummet and they earn 5-10% per year)

Provided you didn't buy euro at 1.25 or pound at 1.60 in 2014 and there are plenty of such examples, you could have sold euro at 1.05 in 2015 with purpose of falling to 1.02

This is not a strategy to make money, and swaps are not positive, so at least something would drop on them while the account is hanging out in drawdown.

 
The drawdown must be commensurate with the expected profit. Without drawdown, there is no profit.
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