Share RISK OF RUIN calculation on OPEN EQUITY not on realized loss. Votes Results
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RISK OF RUIN calculation on OPEN EQUITY not on realized loss. Discussion
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Member Since Sep 14, 2009 87 posts
Join and Enjoy Thousands of Effort Free Pips (moneybotfx)
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. Wise discuss Ideas, Average comment on events, Silly gossip Others |
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Member Since Feb 16, 2010 1332 posts
SOLAR (forexma)
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." |
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