Again, the type of "drawdown" you are talking about (which is simply a partial or total loss of open profit) will be reported ANYWAY in the C2 stats, under the heading "Max PEAK to valley drawdown (historical).
All I am saying is that it should not also be reported in the RISK column because people want to know one thing and one thing only : The maximum loss (of STARTING capital), the system experienced while the trade was still open, if any.
You have to do your own risk assessment because using % of account can be deceptive too (see my reply to the previous spam thread.) But hovering the mouse tells you the most unfavorable price touched while the trade was open and you can calculate the conventional drawdown from that.
Hi Dennis,
You wrote : "But hovering the mouse tells you the most unfavorable price touched while the trade was open and you can calculate the conventional drawdown from that."
Yes you are right, but a lot of new potential subscribers won’t even do it that way, they will see a couple of “EXTREME” in the RISK column and quickly ignore the system.
Personally my system is not concerned but other systems could be unfairly penalized simply because a few trades lost their open profit, partially or totally.
Anyway.
Yup I agree, Igor.
IMO, an even more dangerous thing for subscribers is hiding a really dangerous trade inside a “normal” risk by trading really small in the model account. The system I mentioned earlier had a real underwater drawdown of almost 2000 pips on one trade but C2 called it normal because it was a small percentage of the account. If a subscriber had scaled it up to how you’d normally trade a forex account, he or she would have been in a world of hurt.
True.
On the other hand a 2000 pip PROFIT will also be reported as a small percentage move on the C2 stats and that could hurt the vendor’s bottom line as well, so it works either way.
