- IMO Relative Drawdown is more Important.
- My old limit was 33.33% now I look for 9.99%
- Maximum Drawdown is in Money. [Account Currency].
- MaxDD=Decent Starting Capital @ Broker Minimum Lot.
- MaxDD does-not = worse case. Can always be worse.
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Hi,
When testing EA's, are you more concerned about the max or relative drawdown, perhaps both?
I think max drawdown is more important as this determines the drop from the "balance" whereas relative determines the drop from the "equity".
This way I know what I could expect from the worst possible scenario during testing times regardelss of when the EA was started.
I usually look for max drawdown < 30%, how about you? Where do you set the limit?