Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2016.11.09 08:34
What the Numbers in the Expert Testing Report Mean
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Absolute drawdown is the difference between the initial deposit and the smalles value of balance within testing:
AbsoluteDrawDown = InitialDeposit - MinimalBalance -
Maximal drawdown is the highest difference between one of local upper extremums of the balance graph and the following lower extremums:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak)
The maximal drawdown percentage shows the ratio between the maximal drawdown and the value of respective local upper extremum:
MaxDrawDown % = MaxDrawDown / its MaxPeak * 100%
Besides, you can check the following article:

- www.mql5.com
thank you Sergey.
So based on your explanation, can I confirm that the max drawdown figure in the test report ($190k) is derived from the formation in the attached chart ? approximately.
thank you Sergey.
So based on your explanation, can I confirm that the max drawdown figure in the test report ($190k) is derived from the formation in the attached chart ? approximately.
It is not my explanation.
It is explanation from this article: What the Numbers in the Expert Testing Report Mean -
Maximal drawdown is the highest difference between one of local upper extremums of the balance graph and the following lower extremums:
MaximalDrawDown = Max of (Maximal Peak - next Minimal Peak)
The basic stages of changing the maximal drawdown value within testing are given in the picture below. The total maximal drawdown value is in the thick arrows.

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But, please take into consideration about the following: there is "max drawdown on equity open trades" as well.

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Hi,
Can someone help me please to understand the maximum drawdown in the strategy tester.
I have a setting in the EA to close all positions when the drawdown reaches -$50k, that's why you see the many drops in the attached equity chart, that's understandable.
But what I don't understand is that the maximum drawdown has reached $190K in the test report, how can this be ? shouldn't it be $50k which is the maximum allowed ?
Thank you.