How max dd is calculated

Risk & Drawdowns
1

Is the max dd calculated by just the highest dd occured in one day or the cumulative days of Max Consecutive Losses, i hope Max Consecutive Losses * dd = max dd will be the correct calculation in which we can hold that excess fund at our ledger kindly pls explain

2

Hi @gopi.cr

The Maximum Drawdown shown on the platform is cumulative. It represents the maximum peak-to-trough decline in the Algo’s equity curve over the selected period and is not simply the largest loss incurred in a single trading day.

To help users better understand the risk profile of an Algo, we display multiple risk metrics on the platform, including:

  • Maximum Drawdown – The largest cumulative decline from a peak before the equity curve recovers to a new high. This can be viewed under the Algo Trade Metrics section on the “Algo Performance” tab.

  • Worst Day Return – The highest loss incurred on any single trading day. This can be viewed under the Best & Worst Metrics section on the “Best & Worst” tab.

2 Likes