The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.
Again, not what I said.
I understand a basic leverage calculation. That was not the point of my post or your original post.
You asked how to know the following…
To that I replied that there isn’t one metric. Can we at least agree on that?
If you are going to continue to misquote me, I don’t understand the need for me to continue posting.
Yes, you did say that “there isn’t one metric”, but then you started to talk about maximum drawdowns, the financial instruments being traded, length of drawdowns, etc…
Granted, these metrics are important, but they have very little to do with the only two definitions of leverage, as mentioned above.
But they have a lot to do with your question of being over or under leveraged which I was attempting to address.
The right (optimal) leverage can only be found via the backtest, there is no other way.
In the Head/Tail example, the optimal move (leverage) is to risk exactly 25% of capital before throwing the coin. Any other leverage rapidly decreases the profitability of the system.
Even worse, at 51% leverage we transform an otherwise winning game with a positive mathematical expectancy into a losing game.
I agree on backtesting as critical and should be a requirement for any strategy to be employed successfully. 
Well said.
Leverage is also connected to the Risk of Ruin theory, a vast subject beyond the scope of this thread.
Thanks again D_Financial, nice conversation.
Oh yeah sorry I didn’t realize that they were subs to a system.
No problem at all Sir, after a while it becomes harder to keep track of who said what Lol
