Risk Factor


I’m trying to get a handle on the RISK FACTOR, and how it’s calculated. As other subscribers may be wondering, too (and maybe even the system makers), I thought I’d ask in the open forum here, and use a very easy example.

For the Black Dog system (which I subscribed to, and am very happy with so far), you show a RISK FACTOR of $4,625.00 for the trade on 2-9-06 for 10 contracts. To me, that means your computers show this particular trade went down by $462.50 per contract, before it recovered. If that’s what happened, I understand the risk factor calculation. But, since I was in this trade and others, I don’t recall them having gone that far south from the entry point.

If you put your mouse pointer over the ‘risk’ amount, it should give the detail you’re looking for: the date and price of the drawdown. It’s possible that the price you find could be in error - I’ve seen that a couple of times. In one case, the price had the decimal point in the wrong place. Sometimes the quote vendors don’t get it exactly right…


Thanks for reminding me of that feature. I had forgotten. I’ll just keep an eye on the trades in the future. I can’t imagine the open drawdown posted being wrong, but I sure don’t remember either of the trades on Black Dog I’m referring to ever having been down that much. I see it shows the % of TRADE. I would rather know the % of the total account value risked on any one trade, because I can more easily equate that with the amount of contracts I buy, and with my own account, than knowing how much percentage the trade risked vs. what it eventually made (or lost), but maybe that’s not doable.

As long as the provider released max drawn down from peek to valley on intra-day and daily , it should be ok.