Drawdown is not necessarily the same as the largest losing
trade. Go to the Single Entry Overview/Statistics tab, then
scroll down to Run-Up/Drawdown. It shows the largest drawdown
is $10,041.50. That's about 10% (of $100,000). It also
shows that this drawdown occurred on March 6, 2009. To see
this drawdown on Matt's screen capture, go to the Single Entry
Trade Examples tab and then find the long trade that was entered on
Feb 23, 2009. At the close on Feb 23, the system bought 1330
shares of SPY @ $74.65 = $99,284.50. On March 6, at
the low of the day ($67.10), those shares were worth
$89,243.00 (1330 @ $67.10). That's a drawdown of
$10,041.50 (99,284.50 - 89,243.00). Between Feb 23 and Mar 6
(9 trading days), the value of 1330 shares went from $99,284.50 to
$89,243.00, which is more than a 10% drop. If you had
invested approx $99,284.50 on Feb 23, could you stomach being
down by $10,041.50 in a matter of days. And what if you
had started with $1,000,000 on Feb 23? Could you stomach
being down by more than $100,000 on Mar 6? Drawdown
- See what I mean, jelly bean?
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twedlediva, Drawdown is not necessarily the same
SPY System
Posted by yojimbo on 29th of Apr 2011 at 07:10 pm
twedlediva,
Drawdown is not necessarily the same as the largest losing trade. Go to the Single Entry Overview/Statistics tab, then scroll down to Run-Up/Drawdown. It shows the largest drawdown is $10,041.50. That's about 10% (of $100,000). It also shows that this drawdown occurred on March 6, 2009. To see this drawdown on Matt's screen capture, go to the Single Entry Trade Examples tab and then find the long trade that was entered on Feb 23, 2009. At the close on Feb 23, the system bought 1330 shares of SPY @ $74.65 = $99,284.50. On March 6, at the low of the day ($67.10), those shares were worth $89,243.00 (1330 @ $67.10). That's a drawdown of $10,041.50 (99,284.50 - 89,243.00). Between Feb 23 and Mar 6 (9 trading days), the value of 1330 shares went from $99,284.50 to $89,243.00, which is more than a 10% drop. If you had invested approx $99,284.50 on Feb 23, could you stomach being down by $10,041.50 in a matter of days. And what if you had started with $1,000,000 on Feb 23? Could you stomach being down by more than $100,000 on Mar 6? Drawdown - See what I mean, jelly bean?