Risk categorization of each trade

I made exceptionally good money on my first trade. But it has been categorized as "Very" risky trade. Why? On what basis?

Since I bought the futures, they have not slipped below my entry price significantly (time as well as price). Nor they went hugely up and then fallen sharply, only cover the trade significantly for lower rate.

Then why it has categorized as "Very" Risky?

Someone please verify my system (Avi), which is new and it was my first trade. I am hanging on paying listing fees, if the things are not clear to me.



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The rating is based on the percentage of your model account taken by the maximum intra-trade drawdown. In this case, at the trade’s worst point, your account decreased by 12% in value. 12% of the account for one trade is categorized as “risky” by C2. This is a mechanical rating and is not a human’s value judgment.

Risk is in the eye of the beholder, of course. In some cases, betting 12% of an account on one trade is perfectly fine. It depends what you’re trying to do, and at what level of acceptable risk.


Got it.


By my calculations the bet was about 1,350% of the account, not 12%. 12% was the max drawdown over the period the position was open.