I have noticed that there has been a request by Ross that there be some sort of calculation in the stats regarding a Net Profit/Drawdown. This is an excellent idea. However, there are two problems with this regarding the C2 data.
1) Sometimes a DD is not given. This is not a big problem, but it does prevent the stat from giving a 100% accurate picture.
2) The DD for a trade can be way off. I have never paid a lot of attention to the trade DD’s on my system. I am more worried about the P/L and as long as the DD was not some noticeable amount that I knew was not even close, I would not notice if it was wrong. This is mostly because the DD’s are not posted until one or two days later and by then, that trade is long gone as far as I am concerned. Today I looked at my last 15 or so trades and right off the bat, several of them appeared to be not close to the actual DD that I recalled. As I checked my charts, I saw that at least three of the DD’s posted exceeded $1,000 (one was more than $2,000) but the price data I had showed that the drawdowns were much less. Of course, this makes me wonder how accurate are the other DD’s posted on my system and on other systems. Such errors could really throw off a stat that uses DD’s per trade. (I have sent in a fix request for those trades.)
From now on, I will be more vigilant in checking my DD’s.
would hope that maybe Matthew can check the data sources then. That is a little concerning that DDs would be off that much. I consider DD as one of the several most important characteristics of a system.
Did you also check your net profits for accuracy?
Ross,
I usually check P/L after closing a trade. There have only been two times that a trade was off and that was because of bad fills on the entry price and they were both corrected by C2 after my request (one to the good and one to the bad). I think the P/L data is good and most vendors are going to be watching that number, but the DD, especially since there is a delay in posting, is another matter.
