Max. Drawdown

Here you can find detailed information on the drawdown key figures in the Performance Report.

Max. Drawdown

Performance Report
A phase of declining profit is called a drawdown phase. The key figure Max. Drawdown displays the highest absolute profit drawdown in the time range of the test. The Performance Report also shows the date on which that max. drawdown occurred.

A drawdown phase starts when at a profit maximum a declining development starts with one negative trade. Often, a series of losses and overly small profits adds up to a longer drawdown phase. The size and time range of the drawdown are important criteria for evaluating a trading system.

The drawdown is calculated on basis of closed positions. Therefore, it does not reflect that for held positions, much larger drawdowns might take place.

Max. Intraday Drawdown

The key figure is calculated on basis of the complete profit, including open positions. Therefore, it includes all price movements that cause a drawdown for open positions, although these drawdowns might be reduced or neutral once the position is closed.

With the help of this key figure you get an impression of the maximum loss of your system, i.e. the losses you should be prepared for financially and mentally.