drawdown, Max, Min

Feb 09, 2020 at 07:30
Vistas 908
10 Replies
Miembro desde Feb 11, 2019   posts 2
Feb 09, 2020 at 07:30
What is the difference between drawdown and min pips on a trade?
patience; fast is slow, and slow is fast
Miembro desde Feb 13, 2017   posts 251
Feb 09, 2020 at 22:05
drawdown refers to the difference between a high point in the balance of your trading account and the next low point of your account's balance, Drawdowns also describe the likely survivability of your system over the long run. A large drawdown puts an investor in an untenable position
and min pips on a trade is a different story, that shows type of the trading system.
Miembro desde Feb 11, 2019   posts 2
Feb 12, 2020 at 07:17 (editado Feb 12, 2020 at 07:17)
I'm asking in the context of a single trade. The stats that the history tab's graph when you hover over it shows the 'drawdown' of the trade, then also shows 'Min:' of the trade in pip, then of course also 'max:' of the trade in pips. I can't conceptually understand the difference between drawdown and min of the single trade.
patience; fast is slow, and slow is fast
Miembro desde Feb 22, 2011   posts 4862
Feb 12, 2020 at 13:24
tradeusphog posted:
What is the difference between drawdown and min pips on a trade?
DD is a dynamic number. Showing the equity drop in percent. It is equal to loss of all OPEN trades.
If the DD is 10% then equity is 100-10=90%.

Min pips on a trade is a nonsense.
Trade may have positive or negative pips. The amount is determined by distance from current price (or closing price) and opening price.
E.G. EURUSD open trade at 1.09000, current price is 1.09050. So the trade's pips is 5.0 or 50 pipettes
Miembro desde Jul 20, 2020   posts 232
Dec 09, 2020 at 08:23
You should learn all the basics of forex perfectly before investing in the forex market, Because it is very risky market. Low knowledge can put you in great danger.
Miembro desde Nov 17, 2020   posts 19
Jan 01, 2021 at 13:11
The difference between the low and high point of your trading account will be called drawdown. You can take a course or read about the basics on some website. Familiarise yourself with the terminology as that will help you better.
Miembro desde Jul 19, 2020   posts 788
Jan 03, 2021 at 02:07
almfx posted:
drawdown refers to the difference between a high point in the balance of your trading account and the next low point of your account's balance, Drawdowns also describe the likely survivability of your system over the long run. A large drawdown puts an investor in an untenable position
and min pips on a trade is a different story, that shows type of the trading system.
Yes, you are right. I agree with you.
Miembro desde Oct 27, 2020   posts 16
Jan 11, 2021 at 06:15
Drawdown is the peak-to-trough decline during a specific period for an investment, trading account, or fund. It is the percentage between the peak and the subsequent trough. On the other hand, a pip is the smallest amount by which a currency quote can change.
Miembro desde Dec 24, 2020   posts 12
Feb 24, 2021 at 05:24
It is always better to familiarise yourself with the terminology and concepts. It will only help you in the future and you won’t have to keep asking for help when you get stuck, good luck.
Miembro desde Jul 23, 2020   posts 869
Oct 03, 2021 at 14:24
Drawdown means how much capital is used during a full trade (until closing the trade).
Miembro desde Jul 23, 2020   posts 759
Oct 03, 2021 at 14:56
Those refer to risk management strategy, how much risk you take or are willing to take.
Conectarse / Inscribirse to comment
You must be connected to Myfxbook in order to leave a comment
*El uso comercial y el spam no serán tolerados y pueden resultar en el cierre de la cuenta.
Consejo: Al publicar una imagen o una URL de YouTube, ésta se integrará automáticamente en su mensaje!
Consejo: Escriba el signo @ para completar automáticamente un nombre de usuario que participa en esta discusión.