Why my three product drawdown rates all fell into the same band

I was looking at my product page and noticed something odd.

There are three Expert Advisors (EAs) being released. Their designs, the number of positions held simultaneously, and how they lose are all different.

Yet, in the forward results columnthe “rate” of the maximum drawdownends up being roughly the same across them.

Actual measurements (as of August 26, 2026)

Look at the amounts.$111 and $480 differ by more than fourfold.

The number of positions held simultaneously also varies from 1 to 5. Yet the rates all fall into a similar range.

When this happens, it usually meansyou’re not looking at the denominator.

The denominator was the “recommended margin”

When you hover over the “recommended margin” on the product page, the calculation method appears. It’s published by GogoJungle.

10,000 currency units × Japanese yen rate of transaction currency ÷ 25 × average lot number ÷ 0.1 × maximum number of positions + maximum loss (including inclusive loss) × 2

In Japanese,（margin required to hold the maximum number of positions）＋（maximum loss × 2）is what it is.

And this recommended margin becomes thedenominator for both the maximum drawdown rate and the return rate. When you actually divide, it matches the displayed values.

$480 ÷ $968 ＝ 49.6% ／ $129 ÷ $260 ＝ 49.6% ／ $111 ÷ $293 ＝ 37.9%

Why do they align?

All three of my EAsrun with 0.01 lots and few open positions. Therefore the required margin is very small.

Then the denominator is largely determined by the latter part of the formula “maximum loss × 2.”

The numerator is the maximum drawdown, the denominator is generally about twice the maximum loss.When it takes this form, the rate automatically concentrates into a fixed band.

Even conservatively built, you cannot break out of this band.It’s not the EA’s behavior; it’s the form of the formula that does this.

Conversely, for EAs designed to hold many positions at once, the required margin dominates the denominator. Because the denominator becomes larger,even with the same way of calculating, the rate appears smaller.

In short, what does this rate measure?

It measures, for this EA run with your funds, how much could be shaved off at the worst case.

This is a coherent indicator.It is looking at potential decline relative to the funding amount.

However,it does not measure the size of risk itself.Because the denominator differs by product,comparing rates across products is not valid.

On the same page, numbers with different denominators are listed

To be honest, I should say this.My product page includes numbers that conflict with this rate.

In the product overview, it states “Maximum drawdown $574 (4.35%).”, which is a backtest figure,a rate based on peak balance as the denominator.

Meanwhile, the forward column at the top of the page shows “49.56%.”rate with the recommended margin as the denominator.

With the same phrase “maximum drawdown ◯%,”there are three possible denominators— peak balance, initial funds, and recommended margin.

I hadn’t been able to explain this to people considering a purchase.Presenting the numbers honestly and teaching how to read them are separate tasks.

What to look at

What I now look at, not the rate, are these three things.

First, the amount of drawdown.Rates move with the denominator, but the dollar amount does not.

Second, the required margin.How much should be deposited in the account to cover that amount?

Third, the maximum number of positions held simultaneously.That determines the size of the denominator.

If you have these three,you can convert it to your own account size and recalculate.I have come to believe that the rate is something you compute yourself as a result of that calculation.

Regarding the continuation of this article

From here on,I’ve laid out steps for you to verify it yourself.

Using only the numbers shown on the product page to back-calculate the denominator. How to translate that to your own account size. And points where people often make mistakes in this calculation.

You can do it with a calculator. It’s free, but you need to apply.