Hello dear forumchane! I have a question about determining the exact drawdown when subscribing to a signal.
I will consider the example of a signal:
At the time of writing this question, the maximum drawdown on this account is 28.71% initial Deposit 3026 and current balance / funds 59429.
Now the actual question is, from what amount the maximum drawdown is calculated:
1. From the initial 3026 USD;
2. From the current 59429 USD;
3. the Maximum negative percentage when this drawdown was relative to the balance at that time. The example below:
Let’s take for comparison the drawdown of 8% on the attached chart image at different times and with different balance/funds. According to the example, in the first case, a drawdown of 8% occurred when the balance/funds was 15,000 USD, and in the second case, a drawdown of 8% occurred when the balance was 35,000 USD (marked with red dots on the image). Question: did the amount in USD differ with the same drawdown of 8% ?
Actually, the question itself is just about how to correctly determine the maximum drawdown in order to know exactly what amount to pour on the Deposit when connecting to the signal. If the question was discussed somewhere, please give a link.