Any rookie question, so as not to clutter up the forum. Professionals, don't pass by. Nowhere without you - 6. - page 305

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solnce600:

If in the market there may be only 1 order, with a deposit of $ 1000, at 1 point -1 dollar, with a stop of 400 points, while in a row may go no more than 1 stop (but I do not have them at all).

Maximum drawdown is no more than 39%.

And if the deposit is bigger, but the volume is the same, the drawdown will be less. There are no stops. The maximal drawdown is when the price reaches 1 point below the stop and leaves to profit and closes on it.

Or am I misunderstanding something?

Drawdown - a loss that has not been recorded. Drawdown is the extent to which the unclosed position has gone into deficit during its existence, shedding funds by a specified amount in percentage terms.
 
solnce600:

If in the market there can be only 1 order, for a 1000-dollar deposit, at 1p -1 dollar, with a stop of 400p, while in a row may go no more than 1 stop (but I do not have them at all)

Maximum drawdown is no more than 39%.

And if the deposit is bigger, but the volume is the same, the drawdown will be less. There are no stops. The maximal drawdown is when the price falls below 1 pip to the stop and leaves to profit and closes at it.

Or maybe I misunderstand something?

Correct conversations.
 
artmedia70:


If the order had closed on a stop I would have taken it back with an increased volume on the next trade, I know for sure that the next one will be a 30 pt profit.

That is, I would buy 1.5 lots and make up for the loss from the stop.

 
Integer:
The right talk.

It's nice to hear these words from someone who has 10,258 appearances on this forum.

So why is Artem criticising my idea?

 
solnce600:

If the order would have closed on a stop I would have played it back with an increased volume on the next trade, I know for sure that the next one will be a 30 pt profit.

That is, I would buy 1.5 lots and make up for the loss from the stop.


Did you learn arithmetic in school? If the stop is 400 quid, how much lot would you need to open a position to break even at $400 for 30 pips? And what is the drawdown level of that position when the Stop Out occurs?
 
solnce600:
So why is Artem criticising my idea?

Where is the idea?
 
solnce600:
So why is Artem criticising my idea?


Because reasoning and idea are not the same thing. It seems no one has discussed the idea yet, while everyone has tried to explain what balance drawdown and equity drawdown are and how they differ.
 


For the love of art:)))
Good night, everyone!

 
artmedia70:
Did you learn arithmetic in school? If the stop is 400 quid, then how much lot must you open in order to close the position within 30 points? And what will be the drawdown level of that position when the Stop Out occurs?

Loss from stop-loss - $400

If I buy 1.5 lots - 1 pip will be worth $15

$15 * 30 pips = $450

If the price goes down by 39 pips, the drawdown will be

15 dollars * 39 points = 5850 dollars.

Yes it is a loss of deposit - if the stop happens on the first trades.

But we can refill with a smaller volume and compensate only a part of the stop loss.

Stops are a rare exception to the rule (over 2000 trades - 0 stops).

If there are no stops - then the maximum drawdown - no more than $390.

And then 400 p. is the maximum stop. You can configure a system with a stop of 250 p.

 
Integer:

Is that so?
Dimitri! Sorry, I was having dinner! You have already been answered for me by Artem, and I didn't suggest that Andrei has a drawdown of up to $400 on a single position! And the other side appears on the Real in the movement, when the stop-loss can close on more than a hundred pips worse at five digits, and "spies" for nothing. Therefore I prefer to close calmly with little "blood" and open in the opposite direction.
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