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What drawdown are you comfortable with ? - page 2

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Mohd Shahrezal Abu Bakar
225
Mohd Shahrezal Abu Bakar  

Drawdawn bergantung pada modal yang kita ada, modal serendah 50usd akan memberi risiko yang tinggi... Tetapi dengan modal sekitar 1000usd drawdawn serendah 30% adalah munasabah.

Daniel Andrejczuk
5433
Daniel Andrejczuk  
5%
Christian Deforth
305
Christian Deforth  

I like to trade without stop loss and put a part of the profit out regularly.

So 30-70% drawdown seems okay for me, so long as I have make triply as much profit than losses every year.

With best wishes.

Christian

CrisZind
398
CrisZind  

It depends more on your success rate, if you are 80% successful with whatever drawdown it is "less than margin call" you will be good with 80 trades wins and lose 20 all of the time

either its a 1$ or a 1 billion $ account your win rate will always be the basics

Drawdown doesn't give any indication except that your heart rate will go faster and blood pressure will be higher but your strategy success rate is the important one

Having said that .. if your strategy is 20% successful then 1% drawdown will mean nothing since you will win 20% of the time and lose 80% of the time "losses might or might not wipe out your account in that case"

Wesley Thomas
183
Wesley Thomas  
It depends on account size. A 100k account with a 30% drawdown may cause uneasiness. Whereas, a 2k account with a 30% drawdown may not cause loss of sleep. Trading small accounts is more about the dollar amount loss, not so much the drawdown. 
In both scenarios the loss is 30%. $600 on the 2k and $30,000 on the 100k. A considerable dollar amount difference.
Eleni Anna Branou
Moderator
6054
Eleni Anna Branou  
Wesley Thomas:
It depends on account size. A 100k account with a 30% drawdown may cause uneasiness. Whereas, a 2k account with a 30% drawdown may not cause loss of sleep. Trading small accounts is more about the dollar amount loss, not so much the drawdown. 
In both scenarios the loss is 30%. $600 on the 2k and $30,000 on the 100k. A considerable dollar amount difference.

Small for some its huge for others, so its really not a matter of account size but rather of trading style.

Daniel Krebs
786
Daniel Krebs  
In my opinion I would always budget for a signal provider to double their max drawdown. As a result I have chosen 20% as I would not be comfortable with more than double that at 40% drawdown. 

I want to be safe in the long run and protect my capital where I can. Unexpected things can and will happen. If a 40% drawdown were to occur I would automatically close all open positions and move to a different signal provider. Harsh but fair!

ADRIAN MATUSIAK
1289
ADRIAN MATUSIAK  

Of course it depends on leverage You use.

You can use 1:500 and accept bigger DD when You are sure of EA you use! 

I use my own EAs and got it works. <40% DD is acceptable for me. 

Zee Zhou Ma
1624
Zee Zhou Ma  
I choose 5% drawdown with a bit of extra buffer for market spikes.
CrisZind
398
CrisZind  

Is everyone answering for the same trading style or is it random answers here


DD for long term traders might be different than daily or swing traders


I haven't ever seen a drawdown of 5% and due to my trading style i refuse to have it .. simply means that im risking a few cents to earn a few more cents!!

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