longest run of losing trades and then called that maximum draw down!
Yeah as in the maximum number of consecutive losing trades … in my example this being 11 x losing trades which just happens to give £617.53 … which is nowhere near the maximum £££’s loss I experienced from 6 x consecutive losing trades which was £1505.
Apologies for repeating myself, but it may be useful for others doing a quick scan of this Thread in the future.
So Max Drawdown as quoted in the Overview Tab for the Performance of a System is likely to be not much use for assessing a System robustness.
It may be better to do – as I did – and look closely at the equity curve for the System to spot the largest drop in Gain. Then find these consecutive Losses on the Tab – Closed Positions List and work out a more accurate Max Drawdown using a calculator.
Or for a useful quick and dirty figure use the horizontal cross hair at max and min of the largest drop in gain and read off the equity drop on the right hand scale.
I sure hope Max Drawdown will be reborn as a useful / meaningful tool in Version 11!
PS Same useless logic (not) must also apply to MAX RUN UP!
