Why wide differences between DD (draw down) reported on MT4/5 terminal and online analyses platforms?
Forum on trading, automated trading systems and testing trading strategies
Michalis Phylactou, 2017.02.10 13:50
I believe (correct me if I am wrong) the MT4 platform tends to calculate the drawdown every time the balance changes ,by which it means when a trade closes. While the online platforms do it based on equity which constantly changes. Hence with balance you can have 1 loosing trade open for a while till it turns possitive and the drawdown will not be really reflected accurately .Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2017.02.10 14:01
Hi Idorenyin Umoren,As far as I know - there are several kinds of drawdown (for example - there is DD on equity open trades for example, and it may be used on online platforms).
Why wide differences between DD (draw down) reported on MT4/5 terminal and online analyses platforms?
Regrettably, my initial post was deleted - maybe because I provided links to outside analyses platforms.
But I truly need views / amswers to my question, because I have three online analyses platforms report for same live account maximum DD: 36.63% (Myfxbook), 27.2% (Darwinex) and 38.85% (MQL5 community), respectively, as compared to attched screenshot of MT4 terminal generated maximum DD report:
I will appreciate all reasonable views about the discrepancies.
Thank you.
The truth its in the detail. Have you connected your account in all 3 platforms from the actual beginning?
Because if you connect your account at a later date, tha platform can only scan the completed trades and the DD will be the relative drawdown from the highest to the lowest point of your account.
All the intratrade fluctuations will not be shown and won't be recorded in the actual DD.
This is a trick many signal providers use, they keep their account unconnected with the database and they only connect it at a later date, when they have already formed some nice monthly profits without any actual DD shown.
So, you see a nice small DD percentage, which only reflects the actual DD of the period (last few days or weeks) the signal has been connected to the signal's database.
The truth its in the detail. Have you connected your account in all 3 platforms from the actual beginning?
Because if you connect your account at a later date, tha platform can only scan the completed trades and the DD will be the relative drawdown from the highest to the lowest point of your account.
All the intratrade fluctuations will not be shown and won't be recorded in the actual DD.
This is a trick many signal providers use, they keep their account unconnected with the database and they only connect it at a later date, when they have already formed some nice monthly profits without any actual DD shown.
So, you see a nice small DD percentage, which only reflects the actual DD of the period (last few days or weeks) the signal has been connected to the signal's database.
Yes, the account is under my control, and was connected to all three analyses platforms at same time.
If you connected your account to all 3 platforms from the beginning, then is really strange.
That means that these platforms use a different algorithm for calculating DD.
If you connected your account to all 3 platforms from the beginning, then is really strange.
That means that these platforms use a different algorithm for calculating DD.
Yes, that is true, as I have average maximum DD value (across all three online platforms) increased by 5.12 times as compared to MT4 reported maximum DD (see screenshot above).
Are you trying to compare the output of the tester to the performance on a live account ?
Those will never be the same, they can not be the same.
Are you trying to compare the output of the tester to the performance on a live account ?
Those will never be the same, they can not be the same.
Please check carefully above:
Am referring to data from a live account.
Not data from "backtesting".
Please check carefully above:
Am referring to data from a live account.
Not data from "backtesting".
Yes, but the detailed statement from your Metatrader terminal does NOT consider the "floating" drawdown of your open trades like statistic pages do.
In this statement file you'll only see the "realized" drawdown based on the final result of these trades.
Example: Your trade is going down 50% and closes with a 3% loss.
The monitoring/statistic page will show you the real maximum drawdown of 50%
The Detailed Statement of your Terminal will show a maximum drawdown of 3%.
Yes, but the detailed statement from your Metatrader terminal does NOT consider the "floating" drawdown of your open trades like statistic pages do.
In this statement file you'll only see the "realized" drawdown based on the final result of these trades.
Example: Your trade is going down 50% and closes with a 3% loss.
The monitoring/statistic page will show you the real maximum drawdown of 50%
The Detailed Statement of your Terminal will show a maximum drawdown of 3%.
Am keen to value Metatrader terminal maximum DD report, because it makes sense to judge maximum DD from actual final trading result(s), as compared to use of dynamic account floating P/L vs. equity, balance.
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Why wide differences between DD (draw down) reported on MT4/5 terminal and online analyses platforms?
Regrettably, my initial post was deleted - maybe because I provided links to outside analyses platforms.
But I truly need views / amswers to my question, because I have three online analyses platforms report for same live account maximum DD: 36.63% (Myfxbook), 27.2% (Darwinex) and 38.85% (MQL5 community), respectively, as compared to attched screenshot of MT4 terminal generated maximum DD report:
I will appreciate all reasonable views about the discrepancies.
Thank you.