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Account Drawdown

FXRX
Dec 20 2013 at 19:56
70 posts
I don't think a high drawdown is an indication of a failing system or reckless trading. For example, a system that can make 200% in a year but has a drawdown of 70% is still a very useful system. You can find some very 'famous' hedge fund managers, who will remain nameless, with over 50% drawdowns. Account drawdown to me is only a component of risk management.

You win some, you lose some.
Professor53
Dec 20 2013 at 20:26
795 posts
In the USA, A DD of 30% can blow the account since we have the 50/1 ratio and FIFO rules. That makes your 70% DD a failed setup for a USA broker. We cant hedge on the same pair. Perhaps someone has a heging EA that we can use on a different pair?

Click on my Name to see My Live Charts and Bio.
FXRX
Dec 20 2013 at 20:28
70 posts
The numbers I gave in the example above are from my real 50:1 US account called 'FXRX-Live1. Not sure where you heard 30% DD will blow your account. There are several US brokers that allow hedging as I am a big fan.

You win some, you lose some.
Professor53
Dec 20 2013 at 20:31
795 posts
So you had a 70% DD on a USA broker and didnt get a margin call? Interesting, May I ask who the broker is? DO you have this on a chart?

Click on my Name to see My Live Charts and Bio.
FXRX
Dec 20 2013 at 20:32
70 posts
Yes, just click my name. The broker of the 'FXRX-Live1' account is FXDD. I have several public profiles that can be seen there.

You win some, you lose some.
Professor53
Dec 20 2013 at 20:35
795 posts
Yep, looking at your charts now...

Click on my Name to see My Live Charts and Bio.
CrazyTrader (CrazyTrader)
Dec 20 2013 at 20:49
1718 posts
Professor53 posted:
In the USA, A DD of 30% can blow the account since we have the 50/1 ratio and FIFO rules. That makes your 70% DD a failed setup for a USA broker. We cant hedge on the same pair. Perhaps someone has a heging EA that we can use on a different pair?


You only have to open 2 accounts.
1 long
1 short

while you can transfer instantely money from an account to the other as much as needed.

FXRX
Dec 20 2013 at 20:51
70 posts
I don't think it is popular knowledge that your account drawdown can be over 100% and not blow an account. All this really means is that your 'top line' aka balance is above your 'bottom line' aka equity by more than 100%. My 'FXRX-Live1' account has almost an 83% drawdown right now and I will still pay taxes this year.

You win some, you lose some.
Professor53
Dec 20 2013 at 20:56
795 posts
To Crazy trader: You cant instantly transfer forex funds from one account to the other. Its not like your bank . Its a approval process and could take 24 hrs or longer. At lease with my broker forex.com Its a request process to move money. Its not automatic.

Click on my Name to see My Live Charts and Bio.
CrazyTrader (CrazyTrader)
Dec 20 2013 at 21:00
1718 posts
Professor53 posted:
To Crazy trader: You cant instantly transfer forex funds from one account to the other. Its not like your bank . Its a approval process and could take 24 hrs or longer. At lease with my broker forex.com Its a request process to move money. Its not automatic.


It's time to get a good broker!

It is possible... I did it today again. : )

Not bank to your forex account... but forex long account vs forex short account... and vice et versa.

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