![]() People have this “gimmie my answer now so I can move on” mentality. I’ve run analytics on my site using crazyegg in the past to see where people click and read the most, and as a blogger myself, I can confirm just how true this is. The problem nowadays is how most people only read the top part of the highlighted article, get their definition, and move on. It got better, but the example you see at the top with the $10K into $9K is what I’m referring to. ![]() One of the best sources of trading information, Investopedia lead off with a fairly misleading example in my opinion. So this meaning is a much easier way to view drawdown…. This is our money we’re talking about, let’s remove as much gray area as we can here. The first definition had to do with the military, but the second definition said this:īut it is a bit short, and left open to interpretation, which is not good. Just to see how it’s normally defined, I went to Google and typed in “drawdown definition”. We turn to the internet for everything these days, and occasionally the internet lets us down. There is more than one way to look at drawdown, some people are aware of this already, but some people are not, and it’s not their fault. There are two types of drawdown, were you aware of this? “When backtesting my system, how I do I know how much drawdown is too much?” In Forex, drawdown is something we always need to keep an eye on.īut are we even looking at it the right way?
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