How to calculate the max drawdown ? Is max drawdown in tester report is true ?
Explained here https://www.mql5.com/en/articles/1486.
Hello to all.
After backtesting a strategy, the system shows the "STRATEGY TESTER REPORT".
Is there any user who can explain to me how the absolute drawdown, the maximum drawdown and the relative drawdown are calculated?
Using Excell, what is the formula that the system used to calculate the value of the three Drawdown parameters?
I thank anyone who can help me.
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
How to calculate the maximal draw down truely ? Where Max draw down is based on Equity or balance ?
Why the rules:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak); and
MaxDrawDown % = MaxDrawDown / its MaxPeak * 100% ;why these rules are differents of the max drawdown displayed on tester report ? (if that was computed in Excel or manualy)