Where can I find the open maximum drawdown of a signal?

[sigja]

Hi all.

Where can I find the open maximum drawdown of a signal please? The "normal" drawdown is good but I assume that normal drawdown is based on closed trades. What about the maximum drawdown including the open trades? Some trades are open for a long time, waiting to turn a loss into a profit. In these cases the open max. drawdown is much higher than the normal drawdown.

Regards

[Sergey Golubev]

I made a summary post (means: the post is always edited for the recent news for example): #51

[Sergey Golubev]

Maximum Drawdown - forum thread - 

------------------------

About the signals - I am not sure which kind of drawdown they (Signal system) are using but it may be the following:

Maximum drawdown on equity open trades

[Sergey Golubev]

More to read -

--------------

• About Drawdown - forum thread
• Is Relative DrawDown terminology identical to Absolute Draw Down ? - forum thread
• Maximum Drawdown - forum thread
• What the Numbers in the Expert Testing Report Mean - the article
• Equity Chart indicator for MT4 and LifeHack Balance Equity indicator for MT5 - CodeBase 

[Sergey Golubev]

sigja:

Hi all.

Where can I find the open maximum drawdown of a signal please? The "normal" drawdown is good but I assume that normal drawdown is based on closed trades. What about the maximum drawdown including the open trades? Some trades are open for a long time, waiting to turn a loss into a profit. In these cases the open max. drawdown is much higher than the normal drawdown.

Regards

..and finally (to make it shorter) -

Forum on trading, automated trading systems and testing trading strategies

Signals. Account monitoring.

Sergey Golubev, 2020.02.20 13:53

And the maximal drawdown in signals is that from Metatrader I gave an example above, according to this article

https://www.mql5.com/ru/articles/1838 (the term "equity" is the equity of open positions, i.e. if all open positions are closed at one time - how much will be in the account)

Maximum drawdown of the signal as percentage of the balance/equity

Maximum drawdown of a signal as a percentage of balance/equity

[sigja]

Nice Sergey. Thanks a lot! My conclusion is that the signal's drawdown chart shows the % open drawdown - it is the difference in % between the balance and the lowest equity.

(Account balance is the balance not including the floating profit/loss from any open trades. Equity is the account balance plus or minus the floating profit/loss from any open trades. From link)

:-)

[sigja]

sigja #:

Nice Sergey. Thanks a lot! My conclusion is that the signal's drawdown chart shows the % open drawdown - it is the difference in % between the balance and the lowest equity.

(Account balance is the balance not including the floating profit/loss from any open trades. Equity is the account balance plus or minus the floating profit/loss from any open trades. From link)

:-)

To be clear: I am referring to the drawdown of the signals in the Signals service (copy-trading service)  :-)

[Eleni Anna Branou]

sigja #:
To be clear: I am referring to the drawdown of the signals in the Signals service (copy-trading service)  :-)

Read this photo carefully.

[sigja]

Eleni Anna Branou #:

Read this photo carefully.

Very nice, thanks Eleni! That is important to know :-)

[sigja]

Eleni Anna Branou #:

Read this photo carefully.

Please see attached file - why are the two drawdowns different? I suppose they should be the same. Do you or anyone know please?

[Eleni Anna Branou]

sigja #:
Please see attached file - why are the two drawdowns different? I suppose they should be the same. Do you or anyone know please?

The smaller drawdown in the below chart is the open/live drawdown of the account and the higher drawdown is the maximum drawdown, including closed positions, so the maximum difference between high/low of the account balance, since the signal was connected to MQL5.com.