Definition of 'Maximal Drawdown'?

[arbitrag3r]

Good day Everybody,

Happy New Year! Wishing all of you a very profitable 2015!

I just need a little help with the definition of 'Maximal Drawdown'. On the Signals page, the definition is given as "Maximal drawdown is percent for balance/equity, resulting in amount xxxx EUR", and I cannot find any other explanation in the search function.

Is 'Maximal Drawdown' the maximum total loss of equity over the trading life of the signal, or is it maximum loss per trade?

Example in the former, say equity is EUR1,000 and the maximum cumulative value of losses of a number of trades during the period of the signal in operation, say EUR300, means the maximal drawdown is 30%.

Thank you for your help.

Cheers! 

[Rodrigo Malacarne]

arbitrag3r:

I just need a little help with the definition of 'Maximal Drawdown'. On the Signals page, the definition is given as "Maximal drawdown is percent for balance/equity, resulting in amount xxxx EUR", and I cannot find any other explanation in the search function.

Is 'Maximal Drawdown' the maximum total loss of equity over the trading life of the signal, or is it maximum loss per trade?

Example in the former, say equity is EUR1,000 and the maximum cumulative value of losses of a number of trades during the period of the signal in operation, say EUR300, means the maximal drawdown is 30%.

Hello arbitrag3r,

please take a look at this page: https://www.mql5.com/en/docs/constants/environment_state/statistics

It states: "Maximum balance drawdown in monetary terms. In the process of trading, a balance may have numerous drawdowns; here the largest value is taken".

Regards,
Malacarne