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how does max DD get calculated

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Mahmoud Farajpour
249
Mahmoud Farajpour 2016.02.21 13:44 
Is max dd the decrease in balance or it refers to equity?
Waseem Raza
8148
Waseem Raza 2016.02.21 17:02  

On total Balance how much you loose  

or

On total balance how much you went down and then again turned in profit.  for example your capital is 1000 USD and your trade saw 100 USD floating loss and then turned in profit  but  your recorded DD is 10%. 

Your Balance means your funds shape before any opening trades and equity means after opening trades current position after profit/loss , always draw-able funds is your available equity , floating loss/profit can not be your capital. 

Mahmoud Farajpour
249
Mahmoud Farajpour 2016.02.21 20:20  
Waseem Raza:

On total Balance how much you loose  

or

On total balance how much you went down and then again turned in profit.  for example your capital is 1000 USD and your trade saw 100 USD floating loss and then turned in profit  but  your recorded DD is 10%. 

Your Balance means your funds shape before any opening trades and equity means after opening trades current position after profit/loss , always draw-able funds is your available equity , floating loss/profit can not be your capital. 

Thanks for the example,  withdrawal does not count in dd, does it? 
Rozana Sustar
2274
Rozana Sustar 2016.02.21 20:32  
Mahmoud Farajpour:
Thanks for the example,  withdrawal does not count in dd, does it? 
It does not count in DD. It will only affect the equity graph. 
Tim Sustar
505
Tim Sustar 2016.02.21 20:47  
[MaxDD]=(([Balance]-[Equity])/[Balance])*100
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