The longer time an EA, cBot is operating the higher the chances are of a higher draw down. The first year running, under 10% draw down is very good, The second year under 15% is acceptable, the third year 20%. Draw downs higher then 20% a year reflects taking too much of a risk of the trading account. 25% draw down as Franck Cirna suggested should be the maximum allowed depending on the strategy at place. More about this and other risk & money management principles can be read at RMMRobot.com
25% is my maximum DD, actually this 15% was due an error of lot size calculation. During backtests my DD did not exceed 13%. I keeo strict money management rules.. Im more concerned about my DD than profit.
Hi Franck, there might be spikes of the draw down, as in your case. It's very important however that we are aware of this and make the necessary changes needed to bring down the risk. You have the right attitude and I'm glad to hear you are more concerned about the draw down in the first place, then profit. Profit is the outcome when the DD is in control.
shen139 posted: Hi, I had some problems with the Swiss franc in the past (:) and I slowed down for some time but lately I started again with good and steady profits. This is my primary account (I don't use systems): https://www.myfxbook.com/members/shen139/zetah/1474723
Greeting's, sir. If You are serious about this, than scroll this page to the top and look at the left part of the screen, just under the discussion's name there is a little golden bell icon and link that says: 'Unsubscribe from this topic' - that's what You need. If You can't find it there than go to your account settings and chose 'Subscriptions' tab and unsubscribe whatever You want.
FxMasterGuru posted: Although the above question was not addressed to me, let me answer it as a starter of this thread.
Yes, it is a real fact. There are some scam brokers which - usually collaborating with scammer signal or EA sellers as part of a Ponzi scheme - falsify results to attract clients for the brokerage and for the scammers... Sometimes the scam broker and the scam signal/EA seller is the same person...
Those 'hand-crafted' results will be published as REAL and VERIFIED results by MyFxBook, as MyFxBook would not know that the broker is a scam broker...
So I consider real and verified results (by MyFxBook) as 'really REAL', only if those results had been verified through a reputed, regulated and mainstream broker, e.g. Pepperstone, IC Markets, etc...
SYNERGYFX and so called Doug Price are churning several news EA's every year. Very scammy.
Risk & Money Management is of interest for all traders and protecting the account should be a primary goal that has to be accomplished, before even thinking of making any money. RMMRobot.com have some interesting ideas how to approach this subject for the trader.
kricka posted: Risk & Money Management is of interest for all traders and protecting the account should be a primary goal that has to be accomplished, before even thinking of making any money. RMMRobot.com have some interesting ideas how to approach this subject for the trader.
Which is the ''interesting approach'' part of it...? Maybe the ''protecting the account as a primary goal'' - as mentioned?
Why the max 25% DD criterium? I have had way higher drawdown, up to 60% and I am making nice profits. I am a gridtrader that trades positive swap only so only sell eurusd, sell usdrub, buy nzdusd, buy gbpchf and some 15 more. Let's say I have 100k to trade with. I open 12 accounts with 5k each and on each account I start gridtrading in a way that I can cope with -600 to -1000 pips. There is 40k left so when an account gets to 70% drawdown I add 5k to that account. By selling eurusd and buying nzdusd I hedge some of the pairs. Worst case scenario I have to add 10k to one account. Other accounts that go my way will profit so after quite some time I could also withdraw 5 times 1k.
This works like a charm for me
The first account with +62% is by far my biggest account holding 52% of my total equity. The one with -31% is closed manually because I decided to leave that broker and open the exact same positions with a better broker.
I have 1 more account that isn't listed here holding 22% of my total equity that also saw 50% DD that has +46% profit.
Why have such a large DD , why not set it at 5-10% and re buy at a better price , if you believe a price is going to pull back what's wrong with buying it cheaper or selling it more expensive , higher gains.
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
Toutes les données et informations sont fournies "en létat", uniquement à titre dinformation, et ne sont pas destinées à des fins de trading ou de recommandation.
Les performances passées ne sont pas indicatives des résultats futurs.