Can someone please explain the difference between Equity Drawdown Maximal and Equity Drawdown Relative?
https://www.mql5.com/en/articles/1486
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Absolute drawdown is the difference between the initial deposit and the smalles value of equity within testing:
AbsoluteDrawDown = InitialDeposit - MinimalEquity
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Maximal drawdown is the highest difference between one of local upper extremums of the equity graph and the following lower extremums:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak)
The basic stages of changing the maximal drawdown value within testing are given in the picture below. The total maximal drawdown value is in the thick arrows.
- The maximal drawdown percentage shows the ratio between the maximal drawdown and the value of respective local upper extremum (of equity):
MaxDrawDown % = MaxDrawDown / its MaxPeak * 100%
![What the Numbers in the Expert Testing Report Mean What the Numbers in the Expert Testing Report Mean](https://c.mql5.com/36/79/what-the-numbers-in-the-expert.jpg)
What the Numbers in the Expert Testing Report Mean
- www.mql5.com
Article explains how to read testing reports and to interpret the obtained results properly.
Your topic has been moved to the section: Expert Advisors and Automated Trading
Please consider which section is most appropriate — https://www.mql5.com/en/forum/172166/page6#comment_49114893
Please consider which section is most appropriate — https://www.mql5.com/en/forum/172166/page6#comment_49114893
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Hey guys,
I tried to understand that and even used ChatGPT for it but still couldn't what is the difference between Equity Drawdown Maximal and Equity Drawdown Relative in this report and what should I really care about as an investor.