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Junior Member
Confused about drawdown
Hey all
What exactly does drawdown refer to and how can I calculate the true DD%.
I am running the Beastie EA and on a 5k demo I have seen it down 700 dollars (I am testing with high lots)
so which should be approximately 12 percent drawdown but if I generate a thorough Statement in MT4 it says that the drawdown is just 2%
Is maximum drawdown not the highest amount of cash your open trades has dropped?
EDIT:
Forgot to mention I was up 500, so about 10%. So drawdown must mean how deep in your initial deposit you move?