**yada0206:**

Looking at the back testing report , the maximum difference between any top to any bottom is 2701.40 (25547.80 - 22846.40) which are 10.5%.

Can anybody solve the difference between the numbers ?

I thought Absolute Drawdown is what the final drawdown calculation is based on.

Ran an EA and the balance never fell below starting balance however the results were - (Absolute drawdown = 352.71, Maximum Drawdown 5164.96, Relative drawdown = 5164.96)

So what is the final drawdown actually calculated on?

Term from http://www.forex-markets.com/forexterms.htm:

**Drawdown:** The magnitude of a decline in account value, either in percentage or dollar terms,
as measured from peak to subsequent trough. For example, if a trader's account
increased in value from $10,000 to $20,000, then dropped to $15,000, then increased
again to $25,000, that trader would have had a maximum drawdown of $5,000 (incurred
when the account declined from $20,000 to $15,000) even though that trader's account
was never in a loss position from inception

THANK YOU ALL

the definition of MAXIMAL DRAWDOWN is :

' maximal drawdown is the highest difference between one of local upper extremums of the balance graph and the following lower extremums:

MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak) " (from 'How to Evaluate the Expert Testing Results' ).

this is exactly the way i try to calculate it, and the for this reason I dont understand the result I got from the EA.

Wouldn't it be more accurate to evaluate an EA if the drawdown is calculated by both equity (for the minimum) and balance (for the top) ?

To my opinion, I would prefer it this way because risk on profit ongoing have a far less psychological impact than on the balance you actually have (the real money earned after close of trades).

For me the maximal Relative drawdown should mean :

"At any time you start running the EA, your account balance at this time will risk a maximum equity drawdown of ..."

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Hi.

I ran an EA and got 29.59% Maximal drawdown (5315.90 $).

As I know, maximal drawdown is the maximum difference between any top to any bottom.

Looking at the back testing report , the maximum difference between any top to any bottom is 2701.40 (25547.80 - 22846.40) which are 10.5%.

Can anybody solve the difference between the numbers ?

thank you

Attach the back testing report.

Files: