Hello,
what DD value in average is a good one?
For sure, the lower the better, but then your performance might be too small depending on the strategy.
Are there any publications about this?
Regards
drawdown is a function of risk you take per trade. For example, if you risk 2% of your account balance per trade and your drawdown is 40%, then you may reduce your drawdown to 20% by reducing your risk to 1% of account balance per trade.
How much you want to risk is completely depends on your personal risk appetite. The rule of thumb is the bigger is your capital, the smaller drawdown you should look for. Most people can accept losing 50% of $1k, but I doubt if anyone is ok with losing 50% of $1mil.
drawdown is a function of risk you take per trade. For example, if you risk 2% of your account balance per trade and your drawdown is 40%, then you may reduce your drawdown to 20% by reducing your risk to 1% of account balance per trade.
How much you want to risk is completely depends on your personal risk appetite. The rule of thumb is the bigger is your capital, the smaller drawdown you should look for. Most people can accept losing 50% of $1k, but I doubt if anyone is ok with losing 50% of $1mil.
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Hello,
what DD value in average is a good one?
For sure, the lower the better, but then your performance might be too small depending on the strategy.
Are there any publications about this?
Regards