Maximum Drawdown to Average Monthly Gains Ratio
Aug 19, 2015 at 06:44
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2 Replies
forex_trader_201100
Member Since Jul 25, 2014
184 posts
Aug 19, 2015 at 06:44
What sort of ratio do you look for in maximum drawdowns to average monthly gains?
Do you have a certain ratio you look for (since this helps to estimate recovery time)?
Are you more focused on potential large gains or keeping low DD?
Do you think anything DD'ing over 50% is probably unviable due to losers arithmetic (ie you need 100% to regain this loss)
Do you have a certain ratio you look for (since this helps to estimate recovery time)?
Are you more focused on potential large gains or keeping low DD?
Do you think anything DD'ing over 50% is probably unviable due to losers arithmetic (ie you need 100% to regain this loss)
Aug 23, 2015 at 21:57
@5starsignalspamm
Better to look for 'floating drawdown' per trade vs avg-gain per trade (better in pips). That gives you how much risk is being taken. Profit% can be skewed by few 'lucky' high-volume trades.
Better to look for 'floating drawdown' per trade vs avg-gain per trade (better in pips). That gives you how much risk is being taken. Profit% can be skewed by few 'lucky' high-volume trades.
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