Hi,
now that there are a lot of feedback about Hawk-fx, I checked the drawdown stats and it says:
85.16% (20061123 to 20061215)
Looking at the chart the equity went from 1.4M to 800K during this time which is nowhere near 85%. Actually the equity curve looks quite smooth in log scale which should be used anyway.
It looks like the managed accounts have overleveraged big time.
Panu
I also was puzzled by the drawdown. I’m not sure about the managed accounts. From the monthly gains shown in the system description (e.g. October), it looks like the managed account results are different from the C2 results b/c the actual entries/exits differ, not just b/c leverage is different.
I think you are confusing yourself between closed equity and open equity statistics.
>It looks like the managed accounts have overleveraged big time.
There is some conflict of interest when personal funds of the money manager is involved. Generally, money managers tend to take greater risks in their personal accounts than in their clients accounts.
Anyway, the basic problem with high win rate systems as pointed out by another reviewer is that they achieve this high win rate mostly by holding on to losing positions until there is nothing left because sometimes those positions dont recoup their losses. The loss rate eventhough miniscule compared to win rate, is enough to blow the account (with poor money management). But, one advantage of a high win rate is that there is a less probability of encountering a consequtive series of losses frequently, but poor money management negates this advantage.
well, Hawk-fx reports a 330 pip loss in the managed account and a 250 pip profit in the C2 system for October, both based on closed positions.
Wow, what a difference. I didn’t know that they are being traded differently. Why differently? I can only think of the greed factor…
ps: and the fear factor…
>I still don’t understand how Hawk-fx drawdown from 1.4M to 700K is 85.16%:
My guess is that 85.16% probably includes Intra-day open drawdowns.
>Or is the graph incorrect?
May not be, but I can’t know for sure because I haven’t been following this system closely.
