What Does Drawdown Mean?
The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough...... OF EQUITY - (balance is meaningless)
1.) Draw down is currently based on Balance, can we have another Draw Down % based on Equity below our current DD % stat. DD based on equity then should be able to record the floating loss. I understand we can look at the equity graph to figure this out, but a simple recording of DD based on equity would make it very easy.
below are past discussions showing concern regarding true drawdown calculations and how to improve this problem.http://www.myfxbook.com/community/suggestion-box/draw-down-chart/9637,1http://www.myfxbook.com/community/suggestion-box/biggest-floating-loss/7887,1http://www.myfxbook.com/community/suggestion-box/see-floating-hidden-risk/26790,1http://www.myfxbook.com/community/suggestion-box/drawdown/23356,1http://www.myfxbook.com/community/suggestion-box/equity-vs-balance/16921,1http://www.myfxbook.com/community/suggestion-box/drawdown-calculation/41739,1http://www.myfxbook.com/community/suggestion-box/correct-drawdown-calculation/43427,1http://www.myfxbook.com/community/suggestion-box/show-lowest-equity-ever/45941,1http://www.myfxbook.com/community/suggestion-box/maximum-difference-between-equity-growth/54958,1
Now this is the current and best solution for handling this problem http://www.myfxbook.com/community/suggestion-box/time-based-equity-graphs-for/46314,1
However, real time data feed would be needed, synchronized broker times, and a lot of coding. So far ZIpsginals is the only site that has real time data feed to calculate true Drawdown (based on equity).
However we would be able to implement this as well. http://www.myfxbook.com/community/suggestion-box/pip-movement-distance/38553,1http://www.myfxbook.com/community/suggestion-box/equity-status/52521,1http://www.myfxbook.com/community/suggestion-box/add-column-for-draw-down/52604,1
With over 100 votes. We need a solution that can capture the true volatility and intra day draw down of a trading system. The equity charts are not enough and are far from the truth.
Currently, changing the Drawdown to be based on Equity Peak to trough makes much more sense than Balance... This would display a more accurate figure when we use the custom search criteria on the Systems page.