[Archive] Learn how to make money villagers! - page 691

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OnGoing:
What was going up should have been fixed. Until it is fixed, it is a paper profit and in fact it does not exist. That is why there is not much use in counting it.
Then you do not mean the maximum drawdown but something else. And why we should always fix the profit when equity has exceeded the balance and not when takeprofit has been reached is not clear.
 
khorosh:
Then you don't mean maximum drawdown, but something else. And why we should always take a profit when the equity has exceeded the balance and not when the takeprofit has been reached is not clear.
Who cares what someone means. What is important for us is to know how much the series has fallen from the start. That is all. In absolute and percentage terms. From the balance (starting point).
 

Well, if the Expert Advisor is supposed to be in a constant drawdown and there are no moments when there are no open positions, then of course the balance may not be taken into account, only equity is important, but if the EA has certain trades with interruptions, in this case, I believe:

DoubleToStr ((AccountProfit()/ AccountBalance()* 100), 2)
 
BeerGod:

Well, if the Expert Advisor is supposed to be in a constant drawdown and there are no moments when there are no open positions, then of course the balance may not be taken into account, only equity is important, but if the EA has certain trades with interruptions, in this case, I believe:

Exactly. We strive to close the series as soon as possible to make equity equal to the balance. Otherwise, until it happens, we are still in a slump.
 
BeerGod:

Well, if the Expert Advisor is supposed to be in a constant drawdown and there are no moments when there are no open positions, then of course the balance may not be taken into account, only equity is important, but if the EA has certain trades with interruptions, in this case, I believe:


We are talking about the maximum drawdown and this is something else than the expression you just quoted.
 
khorosh:
We are talking about maximum drawdown, which is something different than the expression you quoted.

Yuri, at least once test the demo and you will see what we mean by drawdown.

This figure at the very bottom right, that's all that matters in essence. If it is higher (in absolute value) than the difference between balance and margin, the stop-out will be gradually leading to the loss of the deposit.

 
OnGoing:
Exactly. We strive to close the series quickly so that the equity equals the balance. Otherwise, until that happens, we are still in a drawdown.

Why do you associate the essence of maximum drawdown with Ilan's work? This value is not related to any series or any specific Expert Advisor. We should have the following characteristic for the Expert Advisor: the maximum drawdown of equity. Let us assume that this amount = 100 points and it was calculated as a difference between the equity peak above the balance and the equity minimum that followed. In your method, this value will be less than 100, say 80 points. Based on the maximum drawdown measured in the course of testing using your method, you have chosen a smaller initial deposit as the maximum drawdown in this particular example is lower. So, who has a better chance to receive a margin call as there is a possibility that equity on the first trade may decrease by the value of the maximum drawdown calculated according to my method. And your deposit that was not designed for such a drawdown will be safely wiped out.

 
OnGoing:

Yuri, at least once test the demo and you will see what we mean by drawdown.

This figure at the very bottom right, that's all that matters in essence. If it is more (modulo) than the difference between the balance and part of the margin, it starts a gradual withdrawal of the deposit by stop-out.

I remember from the beginning we were talking about maximum drawdown, not just drawdown.
 
khorosh:

Why do you associate the essence of maximum drawdown with Ilan's work? This value is not related to any series or any specific Expert Advisor. We should have the following characteristic for the Expert Advisor: the maximum drawdown of equity. Let us assume that this amount = 100 points and it was calculated as a difference between the equity peak above the balance and the equity minimum that followed. In your method, this value will be less than 100, say 80 points. Based on the maximum drawdown measured in the course of testing using your method, you have chosen a smaller initial deposit as the maximum drawdown in this particular example is lower. So, who has a better chance to receive a margin call as there is a possibility that equity on the first trade may decrease by the value of the maximum drawdown calculated according to my method. And your deposit, not designed for such a drawdown, will be safely wiped out.

What does the paper profit have to do with it, Yuri) Come to your senses. This money is not ours yet. That will trigger a take or close on the market, then you can already start to count the drawdown. And until you close, that money isn't there yet.)
 
khorosh:
I remember from the beginning we talked about maximum drawdown, not just drawdown.

That is another question. You still don't understand what entity we are talking about. That's why I have to explain it on my fingers)

And you have to count constantly comparing the current drawdown, equal to this figure to the right, with the previous value, always selecting its maximum value modulo. It will be the maximal drawdown that we need in absolute terms.

In the process of movement we also calculate the drawdown in percent by balance at once, as it is important to know what part of the deposit is the drawdown at the moment (the maximal drawdown at the moment).

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