Managing drawdown with a leveraged account - getting it right
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Hi everyone,
posting on another topic i want to FULLY UNDERSTAND so i can carry on in my journey 😅 I use a leveraged account with a 1:30 leverage, quite a standard one. I want to fully handle risk management aspect so I avoid or limit problems in my trading.
Let me attach a screenshot of a random backtest. As seen, the selected test has a 3.49% drawdown. I dunno if my leverage affect it or not.
1. Option -----> Yes, and it's like i have to multiply this 3.49 * the leverage (like 30 in this case) so i'd go to a much higher and sustainable situation. However, I doubt that's the case.
2. Option ----> No, it doesn't and a 3.49% drawdown is quite good. Even if it's personal, I'd say a < 10% is a very good one, between 10 and 15 acceptable, between 15 and 20 that's high and the limit, higher not to go further.
Another aspect, let's assume still relating to the attached screenshot in that backtest n demo account i had 5K EUR, so around some 166,00€ real leveraged. The profit I see of 615.72 should on the 5K... so if I correlate the gain on my "real money" I've obtained a much higher profit thanks to many factors, leverage, the quality of the EA etc... am I viewing that right?
Thanks guys! Grazie 🇮🇹