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Final: Draw-down, floating loss, vote results

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Final: Draw-down, floating loss, Discussion

ForexScam
Jun 30 2011 at 19:49
1008 posts
What Does Drawdown Mean?
The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough...... OF EQUITY - (balance is meaningless)


1.) Draw down is currently based on Balance, can we have another Draw Down % based on Equity below our current DD % stat. DD based on equity then should be able to record the floating loss. I understand we can look at the equity graph to figure this out, but a simple recording of DD based on equity would make it very easy.

below are past discussions showing concern regarding true drawdown calculations and how to improve this problem.

https://www.myfxbook.com/community/suggestion-box/draw-down-chart/9637,1
https://www.myfxbook.com/community/suggestion-box/biggest-floating-loss/7887,1
https://www.myfxbook.com/community/suggestion-box/see-floating-hidden-risk/26790,1
https://www.myfxbook.com/community/suggestion-box/drawdown/23356,1
https://www.myfxbook.com/community/suggestion-box/equity-vs-balance/16921,1
https://www.myfxbook.com/community/suggestion-box/drawdown-calculation/41739,1
https://www.myfxbook.com/community/suggestion-box/correct-drawdown-calculation/43427,1https://www.myfxbook.com/community/suggestion-box/show-lowest-equity-ever/45941,1
https://www.myfxbook.com/community/suggestion-box/maximum-difference-between-equity-growth/54958,1

Now this is the current and best solution for handling this problem
https://www.myfxbook.com/community/suggestion-box/time-based-equity-graphs-for/46314,1

However, real time data feed would be needed, synchronized broker times, and a lot of coding. So far ZIpsginals is the only site that has real time data feed to calculate true Drawdown (based on equity).

However we would be able to implement this as well.

https://www.myfxbook.com/community/suggestion-box/pip-movement-distance/38553,1
https://www.myfxbook.com/community/suggestion-box/equity-status/52521,1
https://www.myfxbook.com/community/suggestion-box/add-column-for-draw-down/52604,1

With over 100 votes. We need a solution that can capture the true volatility and intra day draw down of a trading system. The equity charts are not enough and are far from the truth.

Currently, changing the Drawdown to be based on Equity Peak to trough makes much more sense than Balance... This would display a more accurate figure when we use the custom search criteria on the Systems page.
 



ForexScam
Jul 03 2011 at 06:06
1008 posts
Here Ranesh, I added your suggestion too.

https://www.myfxbook.com/community/suggestion-box/tradewise-drawdown-pips/24239,1#?pt=2&p=1&o=24239

As far my Draw down on https://www.myfxbook.com/members/pipinvestment99/risk-capital-investors-fund/124751

The equity has never gone below 2% on any given set of open positions. Look at the history for yourself before making accusations about my trading.

Clearly the Draw down percentages on this site are meaningless as your account states 10%DD while the true stats are 41% ( https://www.fxopen.com/Pamm/Account.aspx?Id=5fd8cae7-4a31-42a7-afd5-145811f2bcfb)

If you knew anything about Drawdown you wouldn't make your ridiculous comments.

The 10+ previous suggestions show that the community would like accurate statistics including you and me.

Twonny
Dec 25 2011 at 21:55
17 posts
Is my fx book considering adding drawdown based on equity not balance yet? Imo its the most important step.

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