6/10(Mon) The maximum drawdown percentage can be decreased to any level
EA Developer's Reiwa Double-E is here.
Today,
the topic is
You can lower the maximum drawdown percentage as much as you like
for backtesting.
In the streets there are claims like “Maximum DD just 1%!”
and promotions that make it seem like low risk,
“You can lower the maximum DD% as much as you want”
so please be careful about this.
This is in the case of a simple interest operation.
To put it plainly,
・Increase the initial margin to a large amount
or
・Lower the lot size to 0.01
This can reduce it as much as you like.
People who do such things are either
those who dirty the numbers or those who do not understand the nature of things.
They are completely untrustworthy,
and you should avoid them at all costs.
Well,
ultimately the users suffer,
and it would be a problem if the mentality becomes that “EA itself is unusable.”
This would be bad.
So,
such people are “the ones who ruin the EA industry.”
They are simply self-serving, self-interest-driven people.
The low maximum drawdown should be considered in relation to the lot size,
for example, a maximum DD of 200 pips per 0.1 lots,
then the maximum DD would be about 20,000 yen per 0.1 lots,
that kind of perspective is what you should look at.
Moreover,
even if the maximum DD is low,
if the net profit is also low, the earning capacity is low,
so the ratio of net profit to maximum DD is important,
and that is the significance of the “Recovery Factor.”
And,
from the maximum DD and required margin,
you can estimate the minimum starting amount.
With that, let’s proceed!
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【Reiwa’s Double-E: EA Submission List】
https://www.gogojungle.co.jp/users/112481/products
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【Reiwa’s Double-E: Series Articles】
■EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
■No Sugarcoating! Gogojungle Issues
https://www.gogojungle.co.jp/finance/navi/series/1701
■Double-E FX Light Talk
https://www.gogojungle.co.jp/finance/navi/series/610
【Reiwa’s Double-E: Beliefs】
We develop EAs by straightforward methods and
aim to have more people rely on us,
and maintain a long-lasting WIN-WIN relationship,
with the goal of revitalizing the EA market and improving literacy.
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