The specific strategy and its corresponding track record will be the centre fold of an investors decision and the relevant peak to trough DD / volatility.
If I was aggressive and invested a notional value in relation to my overall cash wealth, then I'd be more happy to incur a larger draw-down. (This is thanks to leverage supplied by liquidity providers.)
On the other hand, if I were a larger investor, and wanted to invest more cash into the given fund/manager, then I may not have the same leverage ratio's available to me because of the sheer size of the deposited funds - i.e. £1m+. In these circumstances, why would you want to take a large draw-down of say 20%, if the standard of living and your own personal gains are not too hard to reach any more, considering you have larger funds invested?
So in a nut-shell, it's really to do with personal goals, relevant to the funds invested, the managers volatility to gains ratio, historical track record and the strategy employed.
£10,000.00 = 35% DD = 90% Annual = £9,000.00 (Tonnes of leverage easily available)
£100,000 = 11.6% DD = 30% Annual = £30,000.00 (Still lots of leverage available - just not as much used.)
£1,000,000.00 = 5% DD = 12.85% Annual = £128,500.00 (Practically no leverage.)
"Taking responsibility is the cornerstone to a winning attitude"