7/23/2023 0 Comments Trailing max drawdownThe following example is an evaluation with a trailing drawdown of $3,000 with a starting balance of $100,000 buying power.ī.) Trade #2 you lose $500 with an end-of-day PnL (not including commissions) of $2,000Įnd of day trading balance (before commissions) is $102,000.Īs you enter the next trading day, your trailing max drawdown increased by $2,000 from the lowest point ($97,000) and has now been adjusted to a max trailing drawdown of $99,000.Ī.) Trade #1 you lose $1,500 and stop trading.Įnd of day trading balance (before commissions) is $100,500Īs you enter the next trading day, your trailing max drawdown remains at $99,000. The trailing max drawdown is calculated at the end of the trade, which increases your peak equity. Simply put, it always moves up and never down. For this example, we will assume that your evaluation has a trailing max drawdown of $3,000
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