RISK OF RUIN calculation on OPEN EQUITY not on realized loss. vote results
RISK OF RUIN calculation on OPEN EQUITY not on realized loss. Discussion
Jul 14, 2011 at 10:35
1,013 Views
1 Replies
forex_trader_767
Member Since Sep 14, 2009
87 posts
Jul 14, 2011 at 10:35
It is also well known that during the first weeks and months of an account there might be a DD from capital.
MyfxBook statistical engine for RISK of ruin, is showing everything as 99% even if you are -1% in loss at that moment.
Does not distinct either if you are about to loose account or have a 70% realized loss...
Even worst, MYFXBOOK calculation is bad for OPEN DD and does not take into account the EQUITY in order to
calculate the RISK OF RUIN.. So a system that has equity 110% but it is currently at 5% Loss,
risk of ruin will ERRONEOUSLY calculate it as 99,9% to fail, which is WRONG.
So for any credibility for Risk of Ruin, there must be a profitable 6 months + period.
MyfxBook statistical engine for RISK of ruin, is showing everything as 99% even if you are -1% in loss at that moment.
Does not distinct either if you are about to loose account or have a 70% realized loss...
Even worst, MYFXBOOK calculation is bad for OPEN DD and does not take into account the EQUITY in order to
calculate the RISK OF RUIN.. So a system that has equity 110% but it is currently at 5% Loss,
risk of ruin will ERRONEOUSLY calculate it as 99,9% to fail, which is WRONG.
So for any credibility for Risk of Ruin, there must be a profitable 6 months + period.
Member Since Feb 16, 2010
1332 posts
Jul 16, 2011 at 07:42
Right to the point...
"In trading, winning is frequently a question of luck, but losing is always a matter of skill."
*Commercial use and spam will not be tolerated, and may result in account termination.
Tip: Posting an image/youtube url will automatically embed it in your post!
Tip: Type the @ sign to auto complete a username participating in this discussion.
