Hi all,

As you know, C2 “Max Drawdown” Calculation Method as bellow:

**"Max Drawdown" Calculation Method.** We calculate the *Max Drawdown* statistic as follows. Our computer software looks at the equity chart of the system in question and finds the largest percentage amount that the equity chart ever declines from a local “peak” to a subsequent point in time (thus this is formally called “Maximum Peak to Valley Drawdown.”)

In my opinion, that Calculation Method is not clear for a REAL Drawdown of a strategy because the “largest percentage amount that the **equity** chart” is not exactly for evaluate a strategy. It should “largest percentage amount that the BALANCE chart” instead.

For example my strategy (https://collective2.com/details/118816746) Max Drawdown Calculation:

The largest BALANCE chart is $13,754 only (13,419+335) but C2 show $14,242 (largest **equity** chart). **That mean it’s worse 3.5% DD than it’s real DD**.

Thought, C2 should add a largest **balance** line (above S&P500 line) and/or a Max DD based on “Maximum Peak balance to Valley Drawdown”.

Tips for Investors. Start subscribe a strategy closed all open position or a strategy with floating DD (you will get better results if those positions are loss). Do not jump into a strategy with open positions of floating gains.