drawdown, Max, Min

Feb 09, 2020 at 07:30
1,085 Angesehen
10 Replies
Mitglied seit Feb 11, 2019   2 Posts
Feb 09, 2020 at 07:30
What is the difference between drawdown and min pips on a trade?
patience; fast is slow, and slow is fast
Mitglied seit Feb 13, 2017   251 Posts
Feb 09, 2020 at 22:05
drawdown refers to the difference between a high point in the balance of your trading account and the next low point of your account's balance, Drawdowns also describe the likely survivability of your system over the long run. A large drawdown puts an investor in an untenable position
and min pips on a trade is a different story, that shows type of the trading system.
Mitglied seit Feb 11, 2019   2 Posts
Feb 12, 2020 at 07:17 (bearbeitet Feb 12, 2020 at 07:17)
I'm asking in the context of a single trade. The stats that the history tab's graph when you hover over it shows the 'drawdown' of the trade, then also shows 'Min:' of the trade in pip, then of course also 'max:' of the trade in pips. I can't conceptually understand the difference between drawdown and min of the single trade.
patience; fast is slow, and slow is fast
Mitglied seit Feb 22, 2011   4862 Posts
Feb 12, 2020 at 13:24
tradeusphog posted:
What is the difference between drawdown and min pips on a trade?
DD is a dynamic number. Showing the equity drop in percent. It is equal to loss of all OPEN trades.
If the DD is 10% then equity is 100-10=90%.

Min pips on a trade is a nonsense.
Trade may have positive or negative pips. The amount is determined by distance from current price (or closing price) and opening price.
E.G. EURUSD open trade at 1.09000, current price is 1.09050. So the trade's pips is 5.0 or 50 pipettes
Mitglied seit Jul 20, 2020   232 Posts
Dec 09, 2020 at 08:23
You should learn all the basics of forex perfectly before investing in the forex market, Because it is very risky market. Low knowledge can put you in great danger.
Mitglied seit Nov 17, 2020   19 Posts
Jan 01, 2021 at 13:11
The difference between the low and high point of your trading account will be called drawdown. You can take a course or read about the basics on some website. Familiarise yourself with the terminology as that will help you better.
Mitglied seit Jul 19, 2020   788 Posts
Jan 03, 2021 at 02:07
almfx posted:
drawdown refers to the difference between a high point in the balance of your trading account and the next low point of your account's balance, Drawdowns also describe the likely survivability of your system over the long run. A large drawdown puts an investor in an untenable position
and min pips on a trade is a different story, that shows type of the trading system.
Yes, you are right. I agree with you.
Mitglied seit Oct 27, 2020   16 Posts
Jan 11, 2021 at 06:15
Drawdown is the peak-to-trough decline during a specific period for an investment, trading account, or fund. It is the percentage between the peak and the subsequent trough. On the other hand, a pip is the smallest amount by which a currency quote can change.
Mitglied seit Dec 24, 2020   12 Posts
Feb 24, 2021 at 05:24
It is always better to familiarise yourself with the terminology and concepts. It will only help you in the future and you won’t have to keep asking for help when you get stuck, good luck.
Mitglied seit Jul 23, 2020   869 Posts
Oct 03, 2021 at 14:24
Drawdown means how much capital is used during a full trade (until closing the trade).
Mitglied seit Jul 23, 2020   759 Posts
Oct 03, 2021 at 14:56
Those refer to risk management strategy, how much risk you take or are willing to take.
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