Drawdown on signal is incorrect

[James Seal]

Hi,

A signal had a drawdown 27.39% which i agree with then after a few orders closed, a mixture in profit and loss, but the overall outcome was a profit, the drawdown updated to 35.8%.

Nowhere on the drawdown chart is the drawdown any higher than 27.39%

How do i get the drawdown figure updated to the correct figure of 27.39%

All help much appreciated 

[Eleni Anna Branou]

James Seal:

Hi,

My signal had a drawdown 27.39% which i agree with then after a few orders closed, a mixture in profit and loss, but the overall outcome was a profit, the drawdown updated to 35.8%.

Nowhere on the drawdown chart is the drawdown any higher than 27.39%

How do i get the drawdown figure updated to the correct figure of 27.39%

All help much appreciated 

The maximum drawdown value is not the maximum live/working drawdown only, but also the difference from the highest to the lowest of your account and that is not 27%.

[James Seal]

Eleni Anna Branou:

The maximum drawdown value is not the maximum live/working drawdown only, but also the difference from the highest to the lowest of your account and that is not 27%.

Hi Eleni

Thanks for the speedy response and i dont totally understand what you are saying.

I understood the definition of Drawdown to be cumulative live debt against the account balance and this is displayed either as a physical value or typically as a percentage.

Can you please explain on what you are saying?

I have copied the section of trades that i believe caused the issue - basically i closed the debt trades first then the profit trade - therefore always keeping the live debt low on the account.

Thanks for your help

[Eleni Anna Branou]

James Seal:

Hi Eleni

Thanks for the speedy response and i dont totally understand what you are saying.

I understood the definition of Drawdown to be cumulative live debt against the account balance and this is displayed either as a physical value or typically as a percentage.

Can you please explain on what you are saying?

I have copied the section of trades that i believe caused the issue - basically i closed the debt trades first then the profit trade - therefore always keeping the live debt low on the account.

Thanks for your help

The difference between these 2 points is 35% not 27%.

[James Seal]

Eleni Anna Branou:

The difference between these 2 points is 35% not 27%.

Hi Eleni,

Thanks for the response but that is not right - how did you manage to workout the difference between those two points is 35%?

Also the time difference between those two points means that both points were not live at the same time and therefore cannot be judged against each other.

Plus with your rationale the drawdown would be 100% for every signal if you are taking the high and low points from that chart

The drawdown is still 27.39% for this signal and it should be changed back

Kind regards

James 

[Sergey Golubev]

There is drawdown by balance, there is relative drawdown, maximal drawdown, APD, drawdown factor in dollars, drawdown factor in pips, and more (some of them are on this page by the desctiption).
I personally like max floating drawdown based on equity open trades (it is very good index but it is very difficult to measure because you should have a special tool for that working on your Metatrader in 24/7).

If you say that some kind of drawdowns is mistaken on your signal stats so you made a research, you know everything (and how it is calculated for many kinds of drawdowns) and you have a proof for it.
If not so - nothing to discuss, and no one (incl the service desk) will review anything about it sorry.

[Eleni Anna Branou]

James Seal:

Hi Eleni,

Thanks for the response but that is not right - how did you manage to workout the difference between those two points is 35%?

Also the time difference between those two points means that both points were not live at the same time and therefore cannot be judged against each other.

Plus with your rationale the drawdown would be 100% for every signal if you are taking the high and low points from that chart

The drawdown is still 27.39% for this signal and it should be changed back

Kind regards

James 

These 2 points represent 2 different instants in the account's balance and their distance is 35% (880 -35.8% = 565).

Maximum drawdown in MQL5 statistics is not only the live working drawdown, but the maximum drawdown between highest and lowest points in signal's balance.

If somebody would subscribe at the signal at the highest point of my diagram, at the time his/her account would reach the second point, his/her max drawdown would be 35% and not 27%.

I am not going to explain this again.