![]() So we’ve lost 10% of our account in the first place but now we need to gain 11.11% of our account to breakeven. Now what percentage of $90 becomes $10? The answer is 11.11%. How much you need to gain to come full circle? Obviously $10. In this case, you’ve lost 10% of your account. Well, the general answer for this question is the lower the better,īecause when you lose x% of your account, you need to gain x+n% to get to the break-even. So when you look for the EAs with low drawdown, you should consider floating loss or current drawdown as well. it means you have a 50% drawdown at the moment. Some Websites that provide stats for EAS or strategies have metrics such as floating p/l or current drawdown so that you can see if an account is suffering a loss at the current moment but if you can’t see such metrics, you can just look at the difference balance and equity to notice that.įor example, if you see the balance of an account is $1000 but the equity shows $500. Technically, the EA is suffering a 50% drawdown in this scenario but we might not be aware of that if we don’t dig deeper and look at the equity and balance of the EA. Is it safe to go with an EA that shows a drawdown of let’s say 5% but it has 50% floating loss or current drawdown? What if a robot keeps trades open for a long time? Some people just look at the drawdown of an EA to figure out whether it’s risky or more reliable but drawdown is calculated when trades are closed. This is the tricky part of a forex robot stats when it comes to drawdown. That’s why wise people are looking for the forex robots that have low drawdown because they know that these kinds of EAs have more chances to survive in the long term and as a result bring them profits. It also means that he/she is well-informed about the money management and doesn’t want to risk too much at any costĪpart from that, when you use too much margin and let your losses grow aggressively, what you do is more like gambling rather than trading, so your account has a high potential to be blown up at any time. When an EA has low drawdown, it means that the creator of that doesn’t let the losses grow too much and has a plan for that. In other words, how much risk it’s willing to take and how far it can dive into a loss. One of the metrics indicating that an EA or forex robot is reliable to some extent is drawdown because it shows us how much money an EA is prone to lose before getting back to break-even and then profit. Forex Robotįor finding the best forex robots, you can check out the following article Does Low drawdown Always Mean Low Risk?Ĭlick on the titles on the table, for example drawdown, to sort them out from low to high and vice versa.
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