Backtesting drawdawn

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Tomas Gracias
315
Tomas Gracias  

Hi,


my EA is set to close at 30% DD. It does work correctly on demo.

The thing is that during backtest I see DDs like 50 or 60% which is impossible.

What is your experience? 

Eleni Anna Branou
Moderator
6554
Eleni Anna Branou  
Tomas Gracias:

Hi,


my EA is set to close at 30% DD. It does work correctly on demo.

The thing is that during backtest I see DDs like 50 or 60% which is impossible.

What is your experience? 


Your EA is may be set to close on 30% DD on the current open position, but in your backtest the DD values you see are the relative and maximal DD from the highest to the lowest point of your balance. So, the 50 or 60% DD you see, is the result of 2 or more negative trades in a row or some lost positions between profitable trades.
Tomas Gracias
315
Tomas Gracias  
Eleni Anna Branou:

Your EA is may be set to close on 30% DD on the current open position, but in your backtest the DD values you see are the relative and maximal DD from the highest to the lowest point of your balance. So, the 50 or 60% DD you see, is the result of 2 or more negative trades in a row or some lost positions between profitable trades.


My DD is also relative.

It is percent of negative trades versus balance.

So let me rephrase question where in backtetsts do you see normal DD as percent of negative trades versus balance?

I dont care what is the highest versus lowest point of balance.

Eleni Anna Branou
Moderator
6554
Eleni Anna Branou  
Tomas Gracias:


My DD is also relative.

It is percent of negative trades versus balance.

So let me rephrase question where in backtetsts do you see normal DD as percent of negative trades versus balance?

I dont care what is the highest versus lowest point of balance.


I don't think there is a way to see that.
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