Your acceptable DD range (RR is constant at 10 - 5)

To add comments, please log in or register
Luciano Ola
974
Luciano Ola  
  • 10% (8)
  • 20% (17)
  • 70% (58)
Total voters: 83
Luciano Ola
974
Luciano Ola  

Where would you draw the line?

My view of the situation is as follows.

1% - 2% (maximal) is extremely ideal - ideal and slightly more realistic, with an annual turnover of around 10%.

2% - 5% (maximal) is ideal and slightly more realistic - manageable and much more realistic, with an annual turnover of around 18% - 23%.

5% - 10% (maximal) manageable and much more realistic - not very worrying but psychological limit, with an annual turnover of around 30% - 50%.

ForexTrader7
523
ForexTrader7  
Luciano Ola:

Where would you draw the line?

My view of the situation is as follows.

1% - 2% (maximal) is extremely ideal - ideal and slightly more realistic, with an annual turnover of around 10%.

2% - 5% (maximal) is ideal and slightly more realistic - manageable and much more realistic, with an annual turnover of around 18% - 23%.

5% - 10% (maximal) manageable and much more realistic - not very worrying but psychological limit, with an annual turnover of around 30% - 50%.


How about 5-10% (maximal) with monthly turnover 30%-50%. That's what is more like a good strategy and a way to go. 
gunasri
212
gunasri  
imposible than i get > 5 - 10 % each more...meybe stable in range 20 - 30 % from balance
Luciano Ola
974
Luciano Ola  
John McClark:

How about 5-10% (maximal) with monthly turnover 30%-50%. That's what is more like a good strategy and a way to go. 

Getting 30% - 50% a month doesn't seem too realistic, not that I would necessarily complain, but one would have to wonder where all that money is coming from.

I know I would be concerned with the conditions of global markets if I was making that much a month.

Md. Shahadat Hossain
642
Md. Shahadat Hossain  
actually im ok with 20% also. more then this is a bit risky.
Tan Jia Yuan
171
Tan Jia Yuan  
Our strategy aims for 100% annual return with 10% drawdown target. I think it is a fine profit to drawdown ratio. 
Khurram Mustafa
68419
Khurram Mustafa  
Luciano Ola:

Where would you draw the line?

My view of the situation is as follows.

1% - 2% (maximal) is extremely ideal - ideal and slightly more realistic, with an annual turnover of around 10%.

2% - 5% (maximal) is ideal and slightly more realistic - manageable and much more realistic, with an annual turnover of around 18% - 23%.

5% - 10% (maximal) manageable and much more realistic - not very worrying but psychological limit, with an annual turnover of around 30% - 50%.

Good explain
Khurram Mustafa
68419
Khurram Mustafa  
gunasri:
imposible than i get > 5 - 10 % each more...meybe stable in range 20 - 30 % from balance
Well said, I agree
Luciano Ola
974
Luciano Ola  
Tan Jia Yuan:
Our strategy aims for 100% annual return with 10% drawdown target. I think it is a fine profit to drawdown ratio. 
Ah sorry when I said 5 - 10 DD and 10 - 5 RR ect  I actually meant that the capital growth% was constant and that the RR would half when the DD doubled.
Isauro Martinez Tamez
643
Isauro Martinez Tamez  

For me the DD is less important than the ration against it profitability, i.e. A drawdown of 1% can be awesome but not if it's making 2% yearly, A drawdown of 20% can be not good but it will if it's making 1100% yearly. I think the most DD I would ever accept is 40%, after that you have to give me at least 25 times my initial investment yearly. 

12
To add comments, please log in or register