# Risk of 20% Account Loss

**URL:** <https://forums.collective2.com/t/risk-of-20-account-loss/3234>\
**Category:** C2\
**Created:** [January 7, 2009, 8:01am UTC](https://forums.collective2.com/t/risk-of-20-account-loss/3234 "2009-01-07T08:01:50Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![SubbareddySelv2](https://avatars.discourse-cdn.com/v4/letter/s/6a8cbe/32.png) [@SubbareddySelv2](https://forums.collective2.com/u/SubbareddySelv2)\
**Post date:** [January 7, 2009, 8:01am UTC](https://forums.collective2.com/t/risk-of-20-account-loss/3234/1 "2009-01-07T08:01:50Z")

</div>

Hi Mathew  
  
  
  
My system ( Reddy Fx) maximum DD is 16.5%, But all of sudden Risk of Account loss shows 2.4%,  
  
Could you please clarify how this parameter is calculated.  
  
In fact maximum DD was in the month of November, But this 2.4 %is appearing only in the month of Jan & did not appear prior to this

---

<div class="post-metadata">

**Author:** ![MatthewKlein](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/matthewklein/32/21382_2.png) [@MatthewKlein](https://forums.collective2.com/u/MatthewKlein)\
**Post date:** [January 7, 2009, 8:33am UTC](https://forums.collective2.com/t/risk-of-20-account-loss/3234/2 "2009-01-07T08:33:16Z")

</div>

Monte Carlo simulations are run on your trading system once each week. They calculate the probability of a given drawdown. Your system’s maximum peak-to-valley drawdown statistic is unrelated to this.