I think 5% is extremely conservative, albeit I too don't like DD, but the whole idea of trading FOREX, Futures, options or any other highly leveraged instrument is to have higher than average returns and higher DDs are part of the package. Otherwise why trade these instruments? Better off trading less leveraged instruments, blue chip stocks for eg.
Personally I could accept as high as 20% (as long as the return is worth it) but would find it hard to sleep. 10% to 15% would be a lot more comfortable. 5% DD with exceptional returns, well that would be heaven.
Hate your losers more than you like your winners