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(please see attached picture) can someone explain where the maximal and relative dd figures are coming from?

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Myles Crouch-Anderson
1153
Myles Crouch-Anderson  

hi,


i recieved this mt4 strat tester report from an EA, i dont understand where the maximal drawdown or relative drawdown figure (155) is coming from?


it is shown as 155 (9.18%) but how can this be? the largest loss was 11, the largest run of losses was 99 and the total loss was 600?


i thought maximal drawdown was the biggest hit the account took through the trading period, at one and any given time.. e.g. the account would have had to have -150 on the open trades at some point for the maximal drawdown to be 99.


but this is impossible as the maximum consecutive losses is 99 and the highest loss is 11!


any ideas?

thanks

Stuart Browne
5970
Stuart Browne  
Myles Crouch-Anderson:

hi,


i recieved this mt4 strat tester report from an EA, i dont understand where the maximal drawdown or relative drawdown figure (155) is coming from?


it is shown as 155 (9.18%) but how can this be? the largest loss was 11, the largest run of losses was 99 and the total loss was 600?


i thought maximal drawdown was the biggest hit the account took through the trading period, at one and any given time.. e.g. the account would have had to have -150 on the open trades at some point for the maximal drawdown to be 99.


but this is impossible as the maximum consecutive losses is 99 and the highest loss is 11!


any ideas?

thanks

The losses don't have to be consecutive. 
Myles Crouch-Anderson
1153
Myles Crouch-Anderson  
Stuart Browne:
The losses don't have to be consecutive. 

no but why is my maximal drawdow 150?


the account only trades once per day.. and the biggest loss is 11?


the account has never had more that 99 losses in a row so thats the maximum it could have been drawing down?

Stuart Browne
5970
Stuart Browne  
No, 99 is not the max DD. Check your graph. It wasn't included in your screen shot. What's the max excursion from balance to equity....?? You can have x amount of loses in a row, then a string of wins, then more losses. DD is the max (negative) excursion. It has nothing to do with max loss or max losses in a row.
Myles Crouch-Anderson
1153
Myles Crouch-Anderson  
Stuart Browne:
No, 99 is not the max DD. Check your graph. It wasn't included in your screen shot. What's the max excursion from balance to equity....?? You can have x amount of loses in a row, then a string of wins, then more losses. DD is the max (negative) excursion. It has nothing to do with max loss or max losses in a row.

the max dd on the report says "155" right?


Im saying how is this possible?

my EA trades once per day, so in effect the max DD shouldnt be more than (11).. i will run the simulation again and send you a picture of the results, you will see what I mean..

after checking the results at no point was there (-155) in open trades on the account. The largest negative equity at one time was -11.


I will show you.

Myles Crouch-Anderson
1153
Myles Crouch-Anderson  
Stuart Browne:
No, 99 is not the max DD. Check your graph. It wasn't included in your screen shot. What's the max excursion from balance to equity....?? You can have x amount of loses in a row, then a string of wins, then more losses. DD is the max (negative) excursion. It has nothing to do with max loss or max losses in a row.

my SL was set at 11, so every loss = 11 and my max loss = 11 because the most the account could drawdown in one trade is 11.


my account trades once a day.. so the max DD possible at any time is 11 not 155.. i think the back tester has an error.


I checked the results report and the EA traded once every day as expected and each losing trade exited the market at -11 so it is impossible for DD to be more than this.

Marco vd Heijden
Moderator
4821
Marco vd Heijden  
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