RISK OF RUIN calculation on OPEN EQUITY not on realized loss. resultados de voto
Discusión RISK OF RUIN calculation on OPEN EQUITY not on realized loss.
Jul 14, 2011 at 10:35
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1 Replies
forex_trader_767
Miembro desde Sep 14, 2009
posts 87
Jul 14, 2011 at 10:35
It is also well known that during the first weeks and months of an account there might be a DD from capital.
MyfxBook statistical engine for RISK of ruin, is showing everything as 99% even if you are -1% in loss at that moment.
Does not distinct either if you are about to loose account or have a 70% realized loss...
Even worst, MYFXBOOK calculation is bad for OPEN DD and does not take into account the EQUITY in order to
calculate the RISK OF RUIN.. So a system that has equity 110% but it is currently at 5% Loss,
risk of ruin will ERRONEOUSLY calculate it as 99,9% to fail, which is WRONG.
So for any credibility for Risk of Ruin, there must be a profitable 6 months + period.
MyfxBook statistical engine for RISK of ruin, is showing everything as 99% even if you are -1% in loss at that moment.
Does not distinct either if you are about to loose account or have a 70% realized loss...
Even worst, MYFXBOOK calculation is bad for OPEN DD and does not take into account the EQUITY in order to
calculate the RISK OF RUIN.. So a system that has equity 110% but it is currently at 5% Loss,
risk of ruin will ERRONEOUSLY calculate it as 99,9% to fail, which is WRONG.
So for any credibility for Risk of Ruin, there must be a profitable 6 months + period.
Miembro desde Feb 16, 2010
posts 1332
Jul 16, 2011 at 07:42
Right to the point...
"In trading, winning is frequently a question of luck, but losing is always a matter of skill."
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