Can Anyone tell me what exactly is max drawdown?

[Reza Rezaniya]

Hello guys, Can Anyone tell me what exactly is max drawdown? 

I know what is that but I want to know the exact criteria which is affective on it.

For example If I have a position which is running in profit for 10% of my balance, and I do not close it, if it is closed on the position ( risk free )  it shows 10% drawdown for my account??

[Sergey Golubev]

There is small thread:
Maximum Drawdown 

more -

Forum on trading, automated trading systems and testing trading strategies

Maximum drawdown

Sergey Golubev, 2019.07.27 14:12

• Reversing: Reducing maximum drawdown and testing other markets - the article 
• Close all orders once the drawdown reaches a specific percentage - expert for MetaTrader 4
• search more information/tools on CodeBase/Market/forum - https://www.mql5.com/en/forum/193510

[Reza Rezaniya]

Sergey Golubev #:

There is small thread:
Maximum Drawdown 

more -

I didn't get that really

[Sergey Golubev]

• MetaTrader 5 Help → Trading Operations → For Advanced Users → Trading Report → Drawdown Calculation Example  
  and
• MetaTrader 5 Help → Algorithmic Trading, Trading Robots → Testing Report

[Reza Rezaniya]

Sergey Golubev #:

• MetaTrader 5 Help → Trading Operations → For Advanced Users → Trading Report → Drawdown Calculation Example  
  and
• MetaTrader 5 Help → Algorithmic Trading, Trading Robots → Testing Report

That was great, thanks. 

Now can you tell me in the graph of statement which drawdown it is showing?

[Dwi Sudarsono]

Ramtin Re.:

Hello guys, Can Anyone tell me what exactly is max drawdown? 

I know what is that but I want to know the exact criteria which is affective on it.

For example If I have a position which is running in profit for 10% of my balance, and I do not close it, if it is closed on the position ( risk free )  it shows 10% drawdown for my account??

Drawdown is a decrease in the value of an investment or investment portfolio from the highest value to the lowest value within a certain trading period. This drawdown is usually quoted as a percentage between the peak and the next trough.

Max Drawdown is the highest Drawdown value that has ever occurred, and that value will change if there is a Drawdown that is higher than the previous Drawdown sir.

[Reza Rezaniya]

Dwi Sudarsono #:

Drawdown is a decrease in the value of an investment or investment portfolio from the highest value to the lowest value within a certain trading period. This drawdown is usually quoted as a percentage between the peak and the next trough.

Max Drawdown is the highest Drawdown value that has ever occurred, and that value will change if there is a Drawdown that is higher than the previous Drawdown sir.

So it does not matter whether I close the trade or not? 

It is calculated by the equity, or the balance?

[Dwi Sudarsono]

Ramtin Re. #:

So it does not matter whether I close the trade or not? 

It is calculated by the equity, or the balance?

Drawdown is calculated by equity, and balance sir.

[Reza Rezaniya]

Dwi Sudarsono #:

Drawdown is calculated by equity, and balance sir.

Much appreciated. 

[Michael Charles Schefe]

i am sure that it is different for mt4 and mt5, so you should specify which platform you are using.