Dangerous and misleading drawdown calculations Votes Results
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Dangerous and misleading drawdown calculations Discussion
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Miembro desde Oct 27, 2009 15 mensajes
scalpguy
Nov 25 2011 at 10:19
When are you going to fix up the drawdown calculations? By calculating the DD only at the point of closing the positions is deadly wrong ! Between the open and close time the position can be allmost wiped out and still you show the DD risk for example only 2.5% :) This is VERY MISLEADING ! Calculations must be done continuously during the time when positions are open. By doing this you can also provide another important values such a 'MAE' and 'MFE'. Everything else in your service is EXCELLENT and usable. Thank you very much for providing this kind of service. SG |
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Miembro desde Feb 11, 2011 440 mensajes
rob559
Dec 22 2011 at 21:38
I THINK YOU ARE CONFUSING DD AND FLOATING
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Miembro desde Apr 30, 2011 10 mensajes
scls19fr
Jun 04 2012 at 14:10
Hello,
I also found that calculating MAE(Maximum Adverse Excursion) and MFE(Maximum Favourable Excursion) could be very useful There is 2 way to calculate MAE / MFE : on client side or on server side Maybe the Myfxbook EA could calculate MAE and MFE and publish it on the website or as scalpguy said calculate it on the server side. I see that Mt4i has MAE MFE graph They say MAE/MFE data is approximate but I don't know if they get this value on MT client side or on the server side. After getting MAE/MFE you could draw MAE_pips = f(outcome pips) MAE_pips = f(MFE_pips) MAE_pips = f(MFE_currency) You could also draw a kind of candlestick plot Each clandlestick is a trade open = 0 close = outcome_pips min = MAE max = MFE I also consider that floating operation should be considered. Regards |
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