If you had to choose just one, would you prioritize higher returns or lower drawdowns?

There’s no right answer - but your choice says a lot about your trading or investing style.

Which would you pick, and why?

2 Likes

Lower drawdown with higher returns :sweat_smile:

1 Like

Lower drawdown , returns will anyhow come and compound over time

Lower drawdown. If capital is reduced, recovery is very difficult.

Lower Drawdown also with relative comparison of returns

Lower Drawdowns any day. But if the returns are mediocre then low drawdown is useless

Always choose Lower drop-down with consistent return as Capital is more important than higher returns. High return high risk.

It cannot be only one answer.

If lower drawdown around 5% is giving only 10% return and higher drawdown around 25% is giving 80-100% return than I am happy with 25% drawdown.

Lower DrawDown.if capital is wiped out how would you trade. We need more Algos with training Stop loses and small but consultant results. Also an Algo for Momentum trading with weekly or fortnightly rebalancing

1 Like

Mind says Higher returns but heart says lower drawdowns, and I have learnt to listen to :heart:

1 Like

Always Lower Drawdown, as capital protection is most important than more profit. As with less capital when lost, sometimes recovery is also challenging.

2 Likes

I would prefer Lower DD

Avoid trading with insufficient capital. If you are not prepared to handle losses, consider long-term investing instead. For deploying algos worth ₹10 lakhs, keep at least ₹15 lakhs+ in your trading account. More capital allows you to deploy more uncorrelated algos and achieve better diversification.

1 Like