Maximum Drawdown to Average Monthly Gains Ratio

Aug 19, 2015 at 06:44
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2 Replies
5starsignalspamm
forex_trader_201100
Membro Desde Jul 25, 2014   184 posts
Aug 19, 2015 at 06:44
What sort of ratio do you look for in maximum drawdowns to average monthly gains?

Do you have a certain ratio you look for (since this helps to estimate recovery time)?

Are you more focused on potential large gains or keeping low DD?

Do you think anything DD'ing over 50% is probably unviable due to losers arithmetic (ie you need 100% to regain this loss)
Membro Desde Dec 07, 2013   22 posts
Aug 23, 2015 at 21:57
@5starsignalspamm
Better to look for 'floating drawdown' per trade vs avg-gain per trade (better in pips). That gives you how much risk is being taken. Profit% can be skewed by few 'lucky' high-volume trades.
Membro Desde Apr 19, 2015   38 posts
Mar 22, 2018 at 08:27
Hello. I like to continue this topic.

how to view floating drawdown per trade vs gain per trade in pips?

and is maximum drawdown vs average montly ratio is a good indicator to analyse an account performance.
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