Drawdowns

[dilmun99]

I'm comparing relative drawdown and equity charts. How is a relative drawdown defined? It seems to be quite a delicate calculation - so there can be a big drawdown with a couple of minor kinks in it which may get shown as several different relative drawdowns.

Thanks
Andrew

[David Samborsky]

A description of the way that drawdown is calculated can be found on pp 110-111 of the User Manual.

[dilmun99]

I read it already. The description was ambiguous to me. After looking at a number of Trade Logs I think I got it - it's the equity drawdown from the most recent profitable trade.

So you could have a 10% drawdown over 6 trades, but if trade 3 showed a minor gain, the relative drawdown chart might show 2 x 5% draws.

Thanks
Andrew