how does myfxbook calculate drawdown?
Member Since Nov 21, 2011
1718 posts
Sep 26, 2014 at 22:26
DD vs Martingale / grid?
Why would you look at that kind of Accounts / Strategy?
This isn't the way to trade Forex especially right now when market is trendy as hell !
Why would you look at that kind of Accounts / Strategy?
This isn't the way to trade Forex especially right now when market is trendy as hell !
Sep 28, 2014 at 06:36
@fxphysics
I got to correct you here. Myfxbook calculates drawdown based on current time which includes both open and closed trades. So open floating losses on the open trades are considered in the drawdown calculation. @aatie was correct to point this in earlier thread.
On the other hand, FX Blue calculates their drawdown on closed trades only including margin stop outs. Their calculation does involve floating losses. Both types of drawdown calculations are valid and it is up to an individual's preference. For me, i prefer dd based on closed trades.
I got to correct you here. Myfxbook calculates drawdown based on current time which includes both open and closed trades. So open floating losses on the open trades are considered in the drawdown calculation. @aatie was correct to point this in earlier thread.
On the other hand, FX Blue calculates their drawdown on closed trades only including margin stop outs. Their calculation does involve floating losses. Both types of drawdown calculations are valid and it is up to an individual's preference. For me, i prefer dd based on closed trades.
There is nothing lost or wasted in this life
Member Since Jun 25, 2014
11 posts
Sep 28, 2014 at 06:39
Grazy, that is off topic.
Please lets keep the discussion on the right path. And do posts only if you really know something right.
People who are trading with real money would REALLY like to know what a hell is happening in here... maybe I have to open a test account herre with some supported broker and see what is really going on.
Please lets keep the discussion on the right path. And do posts only if you really know something right.
People who are trading with real money would REALLY like to know what a hell is happening in here... maybe I have to open a test account herre with some supported broker and see what is really going on.
Go With The Flow
Member Since Nov 21, 2011
1718 posts
Sep 28, 2014 at 09:52
DD is just an useless stats that everyone likes to look at it.
If you want to look carefully how an account is managed, better to refer to MAE/MFE tab into Advanced statistics
There, you have the details for the last 200 trades only and that tells much more than DD.
If you want to look carefully how an account is managed, better to refer to MAE/MFE tab into Advanced statistics
There, you have the details for the last 200 trades only and that tells much more than DD.
Sep 29, 2014 at 06:36
You will be looking at closed trade statistics on MAE/MFE metrics and I agree this stat is quite useful to assess the trade strategy. If your MAE/MFE is good, it implies the closed trade drawdown will also be good. But myfxbook doesn't publish closed trade dd.
I use the word good as it is relative - one can have different scaling or benchmark. As long as the equity curve is making new highs, then you have a good system.
I use the word good as it is relative - one can have different scaling or benchmark. As long as the equity curve is making new highs, then you have a good system.
There is nothing lost or wasted in this life
Member Since Jun 25, 2014
11 posts
Sep 29, 2014 at 10:22
The question in this tread is 'how do you calculate DD' NOT do you like it or use it... if someone feels DD is useless then it is his problem I am not interested in.
After reading the latest replies it seems the DD will include the open trades.
But what is the calculation frequency ?
Every price move, every second, minute or what ?
So if somebody knows this could you please be kind and give the information (do not chitchat anything else).
After reading the latest replies it seems the DD will include the open trades.
But what is the calculation frequency ?
Every price move, every second, minute or what ?
So if somebody knows this could you please be kind and give the information (do not chitchat anything else).
Go With The Flow
Member Since Sep 26, 2014
7 posts
Sep 30, 2014 at 08:56
Maximum Drawdown is calculated based on {highest account balance(excluding floating P&L) - lowest account equity(including floating P&L) / highest account balance} *100.
This is done at every tick.
Example . A person deposits $100. He makes a trade and immediately makes $100 profit. New balance is $200.
His new open trades have gone to a maximum floating loss of -$150 (when a spike occurs ) where his equity showed as $50 then in this scenario his max DD is :
200(Highest balance) -50 (Minimum Equity) =150/200(highest balance)*100=75% DD.
Hope I could shed light on this.
This is done at every tick.
Example . A person deposits $100. He makes a trade and immediately makes $100 profit. New balance is $200.
His new open trades have gone to a maximum floating loss of -$150 (when a spike occurs ) where his equity showed as $50 then in this scenario his max DD is :
200(Highest balance) -50 (Minimum Equity) =150/200(highest balance)*100=75% DD.
Hope I could shed light on this.
"Together We Grow"---Minimum of 100% every year with compounding
Member Since Jun 25, 2014
11 posts
Sep 30, 2014 at 10:03
Nice!
Thank you !
Thank you !
Go With The Flow
Member Since Sep 17, 2014
12 posts
Oct 01, 2014 at 14:14
If you intend to be a level-headed trader by utilizing DD info i advice you use the standard DD that gives clarity than the DD published on MFB,not only is it confusing,many times it is problematic and gives a parallel DD value.i've tried it several times,the cautious investor/trader seeking info should just stick with what your broker supplies you with
Member Since Sep 26, 2014
7 posts
Oct 01, 2014 at 15:12
All brokers that I traded with calculated DD based on total deposit made instead of highest balance.
"Together We Grow"---Minimum of 100% every year with compounding
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