What drawdown are you comfortable with ? - page 3

[Jermaine Wedderburn]

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!!

Well said...

[[Deleted]]

that is provided you have a tight stop loss or use a small lot size, then your drawdown will not exceed 5%. I believe that is the case with you.

[Currency Advantage]

I like 5% because then I can double down to 15% but I'm not comfortable doing that often. 

[Marzena Maria Szmit]

10-20% is an acceptable with current market movement

[Patrik Tønnessen]

10-15%

[Khairul Ramadhan]

20%

[Michael Reuben Msidada]

I believe that the maximum drawdown a trader should be comfortable with depends on several factors. First and foremost, it's crucial to consider the type of trading account you're using, your account size, and the frequency of your trades.

When it comes to proprietary trading firms, the maximum drawdown is often determined by the firm's specific trading objectives. In many cases, these firms aim to keep their drawdowns below 10%. However, for accounts that involve third-party funds, the acceptable drawdown may be outlined in the investor contract, and it can vary widely from one agreement to another.

Now, when it comes to personal funds and individual traders, the comfort level with drawdowns can differ significantly. Personally, I tend to set a threshold of not going below a 30% annual drawdown. However, it's important to note that this figure can be flexible and may need adjustments based on the specific trading strategy employed.

One key factor to consider is the number of trades executed. If there's a high volume of trades, it can be a signal that the trading strategy should be reevaluated. A large number of trades can increase the risk of a significant drawdown, so it's essential to closely monitor the strategy's performance and adapt as needed to ensure it aligns with your risk tolerance.

In summary, the maximum drawdown that a trader is comfortable with varies depending on the type of account, account size, and trading frequency. For proprietary firms, it's often around 10%, while third-party funds depend on investor contracts. Personal funds can range, and I personally aim to stay above a 30% annual drawdown threshold, but this can be adjusted based on the number of trades and strategy performance. Monitoring and adjusting your drawdown levels are essential for responsible and successful trading.

[ivan levchenko]

I'm comfortable with a 30% payout as long as it doesn't go beyond that. I always like to receive entries

[Bonginkosi Innocent Khumalo]

Radu Bot:

• 5%

  14% (12)
• 10%

  25% (21)
• 20%

  22% (18)
• 30%

  19% (16)
• 40%

  5% (4)
• 50%

  4% (3)
• 50% - 100%

  11% (9)

20%

[Ingo]

David Perk #:
I got 4 accounts, one is high risk I dont care to loose it. 4 others conservative.

That makes it 5 accounts...