Statistically, if you take the average loss per trade, they do not make mistakes, but my math is not such a strategy is correct. According to my calculations the maximum relative drawdown in MA2 can reach up to 30%.
You are correcy, but myfxbook gets confused on one week data. Even if the trader does trade perfectlly the markets change.
I'm not saying that I am good at math, but I don't think there is possible to calculate the max DD. If I loose 30%, then it's possible to loose another 30% on remaining, then another 30% on remaining ...
I was not talking about a 30% loss of cash, but of loss followed by mandatory full recovery. But you are right that modern finance may be situations such universal collapse or severe shocks under which money are not only in trade but can be lost, and even what is stored under the mattress.)
By the way I have developed a hedging strategy which starts at the designated investor maximum drawdown, which will not go below a certain loss in advance. By this logic, hedging can operate in the manual version, but now I have been programming this logic and EA will be 100% non-drainable.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.