Maximum Drawdown

[Pieter Esterhuizen]

How does one have your maximum drawdown reviewed?

[Stuart Browne]

Pieter Esterhuizen:
How does one have your maximum drawdown reviewed?

Sorry your question is not clear, can you explain a bit more?

[Pieter Esterhuizen]

Stuart Browne:
Sorry your question is not clear, can you explain a bit more?

sure...they advised my signal will become available for subscription once my drawdown improves. Does the maximum drawdown actually decrease as equity decreases?

[Alexey Minkov]

Pieter Esterhuizen:
sure...they advised my signal will become available for subscription once my drawdown improves. Does the maximum drawdown actually decrease as equity decreases?

Everyone wants a low drawdown. But the exact value of a drawdown nobody can say. It all depends on profits. If you make 100% per month, the drawdown of 50% will not be very scary. If you make 10% per month, a 20% drawdown will very scare.

[Stanislav Korotky]

Pieter Esterhuizen:
sure...they advised my signal will become available for subscription once my drawdown improves. Does the maximum drawdown actually decrease as equity decreases?

I'm not sure drawdown can be "improved" (reduced from already existing level) on the full record. If you have some maximal drawdown (relative or absolute) in your trading history up to the moment, you can not make it smaller because it's already on the record. For example, if it is 20%, you then can trade a million profit without a single loss, yet you will still have 20% drawdown. Perhaps, they mean drawdown on a limited period of the history. Please, provide more details and references for the statement about "improved" drawdown.

[Mirko Cerulli]

Pieter Esterhuizen:
sure...they advised my signal will become available for subscription once my drawdown improves. Does the maximum drawdown actually decrease as equity decreases?

There is no way to improve it once registered in the historical.

The restriction is related to current drawndown: Floating position(s)

If I correctly remember: from 30% of drawndown, subscriptions are not allowed.

Once recovered it (in whole or in part), the block disappears.

But, I think you had discovered it alone, a few hours ago :)