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

 
  • 10% (8)
  • 20% (17)
  • 70% (58)
Total voters: 83
 

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%.

 
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. 
 
imposible than i get > 5 - 10 % each more...meybe stable in range 20 - 30 % from balance
 
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.

 
actually im ok with 20% also. more then this is a bit risky.
 
Our strategy aims for 100% annual return with 10% drawdown target. I think it is a fine profit to drawdown ratio. 
 
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
 
gunasri:
imposible than i get > 5 - 10 % each more...meybe stable in range 20 - 30 % from balance
Well said, I agree
 
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.
 

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. 

Reason: