Posts de jpkfox | Myfxbook

Drawdown by balance. dans Boîte à suggestions Oct 27, 2010 at 16:23

Sorry, one more message. :) I just want to "prove" finally here that its not good to calculate drawdown by equity. I will show an example to illustrate... tihs time a trader who trades every day one trade 250 time a year. So in one year he trades 250 trades.Lets imagine he trades the following way:- Only one trade per day.- He gets every day +25pips from his one trade.- His trade never goes more than -5 pips negative.- He always uses risk: 1pip = 1% of the starding balance for that day (so for 100 money 1pip=1money).- Every time he trades his trade gets his equity first to +150% pro...

Drawdown by balance. dans Boîte à suggestions Oct 27, 2010 at 11:57

ok, np. Ye, I have like 50% drawdown for this year here even though its been going excellent this year. According to my calculations I have had about -28% DD max this year.Its a very important thing, because now people think that I have a huge DD which is not really true. And thus I came from the top to the bottom :( (before this I used to be one of the best traders here with about 30%DD... suddenly, after this change by myfxbook I am at the bottom.). So something has to be done. Its better to have no DD figure at all than having it this way.

Drawdown by balance. dans Boîte à suggestions Oct 27, 2010 at 10:03

:) , No I did not miss the point. The point was originally, that myfxbook seems to calculate the drawdown using purely/only equity. And then in my example I tried to demonstrate how this kind of calcution leads to strange situations (you get 50% drawdown from you winners!).In my example I wanted to show how *wrong* it can go if equity is used. So, I did *not* say that in reality there was 50% drawdown in my example. Its only 50% if somebody uses equity to measure DD. Please read the whole article I wrote before on this thread and you can see that what you just wrote is exactly what I am sayin...

Average holding time -> looser/winner dans Boîte à suggestions Oct 27, 2010 at 09:55

But on the other hand, having a losing trade long time is not necessary a bad thing if it goes according to trading plan. Like lets say somebody has a system with stop loss of 100 and aiming for > +600 winners. Then, even if the price gives this trader a negative floating result long time it does not matter because it is still going totally according to trading plan.I do agree with your initial suggestion that holding time is better, but just saying that holding negative trade does not necessary mean bad.

Drawdown by balance. dans Boîte à suggestions Oct 27, 2010 at 06:06

Yes, I agree, but the point is that is we used equity as a measure to calculate the drawdown then it would be actually 50% in this case, isnt it? Because equity uses the data from running trades as well isnt it? And myfxbook uses equity?

Drawdown by balance. dans Boîte à suggestions Oct 26, 2010 at 14:06

"Doing draw down according to balance makes absolutely no since. "I did not say it should be done according to balance! I said: "minimium of balance/equity". Its totally different..."Balance actually means very little in the real world of 4X trading. "I normally take my profits according to *balance*, not according to equity, because equity does not tell anything about *closed trades*. It tells the situation about half-finished trading.Balance gives the real picture about how system has performed. For example, when I backtest my systems, I never look how hight the...

An option to combine two or more accounts dans Boîte à suggestions Oct 20, 2010 at 23:01

I use Oanda where hedging is not possible on one account. So I have to do my long trades on a different subaccount then short trades. To see my real results these 2 accounts must be combined. So a possiblity to combine account would be nice.This is also good to see total performance if has more than 2 accounts (I have 4 with Oanda). My real perfomance is these 4 combined... and looking at them separately gives wrong picture.

Drawdown by balance. dans Boîte à suggestions Oct 20, 2010 at 22:50

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Drawdown by balance. dans Boîte à suggestions Oct 20, 2010 at 22:43

Why is drawdown calculated by equity? I think it should be done according closed trades which is balance. Or if equity goes negative then by equity. But if equity is positive I think its wrong to take it from there. Like if you look at my account: Its been going very well for and I know that my *real* drawdown was NOT 55% like its here on myfxbook. It has been very small this year, like 20% or something... The way I trade is that I get those very big winners (up to +1000 pips). But because its done by daily candles, it can easily drop many hundreds down from the top. But its all *running winn...

Arbatov System dans Systèmes de Trading Sep 21, 2010 at 18:14

I dont think the amount of money/investors matters here, because its percentage the growd... so all investors would get the same result.

Arbatov System dans Systèmes de Trading Sep 21, 2010 at 15:49

Its not really 1900% profit, if you look at the whole total picture here!! :) . Think about you starding investing with him in 30 Aug . It was then 6150. Its now 1910. So there is -4240% drop! So you would be -4240% in loss.... !

Arbatov System dans Systèmes de Trading Sep 18, 2010 at 20:56

It all depends on how well the "huge profits" trader can backup his results. If its huge results from 10 years trading and with very small maxium drawdown for the whole period, then of course thats the best. But if its huge profits with couple of months testing/trading, and nothing more, then of course thats not good enough.So the real question is that what is the total profit against the biggest drawdown. It does not matter whether its huge profits or small.. those can be changed my money management.

Arbatov System dans Systèmes de Trading Sep 16, 2010 at 08:09

Yeps, these kind of systems must be backtested with many (>6) years data before using them.

Arbatov System dans Systèmes de Trading Sep 02, 2010 at 10:56

6000% was his peak. The problem is that he got -38% drawdown in a very short time. Thats not very good trading without knowing more about his system. Also the loser was very big... so the other problem is , that what if he now gets many such losses in a row??? these are important questions... so I dont know if we can yet rejoice about the 6000% peak....What is he now get -100% profit next? Would you still say that this +6000% was good trading? I think its about long term results which matters.But again, he could be a good trader, I am not saying he is bad... but I cannot say anything according...

Arbatov System dans Systèmes de Trading Sep 02, 2010 at 08:16

But arent you the one who is claiming something here, namely:"Instaforex is not a legit broker but a bucketshop fabricating results."You are making a claim there, isnt it? So you have to prove that this claim is true.I am not saying you are not correct, but just about the proving issue...

Arbatov System dans Systèmes de Trading Sep 02, 2010 at 08:13

I think you have good ideas, but some small corrections imo:1) I think its possible to get 200% yearly gain3) I heard that on Oanda you can have only like max 10 subaccount...donno if this is true. Anybody knows?5) There are systems which can be automated and they have been working. So I would disagree here.

Arbatov System dans Systèmes de Trading Sep 02, 2010 at 07:24

</quote>Yes, exatcly. Its much stronger evidence to trade with certain trustworthy brokers than with some unknow and where you can open many accounts. Like with Oanda you can have one account created with maximum 9 subaccount. Its much more difficult to fake the results that way.

Arbatov System dans Systèmes de Trading Sep 02, 2010 at 07:21

Oh, ok, you were speaking about broker problems. Yes, I have heard about those and thats why I am very cautious with whom broker I use. I have had no problems with Oanda but find it difficult to trust in many brokers.</quote>

Arbatov System dans Systèmes de Trading Sep 02, 2010 at 06:44

"If the perception starts that the brokers themselves are now gaming myfxbook.com then the purpose of this site becomes pointless. "But there are genuine traders here as well... and there is another way then check their results (like checking their live account some other way). So this site can be a starding point. I have already got couple of people asking about my trading (wanting to invest perhaps). I can then prove my results other ways also if needed..."Virtually nobody is making money on forex over a 5year period, only a few people."There are many people making good m...

Arbatov System dans Systèmes de Trading Sep 01, 2010 at 07:05

As I said earlier (before this bigger loss) that in my opinion this account did not seem to me the best choice if I was to choose a system from here. I said earlier, that the reason was that there is only couple of months results, so cannot say much yet about long term trading. Also it looked that he is using very big stop losses, which now appeared to be true. Let me analyze this system:According to results so far on this system, I do not see them good results (at least yet). Here are the reasons:1) Way too short period to make any judgements (only couple of months trading)2) Looking at sta...

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