Can anyone explain Drag Down difference

shanmugapradeep

Private, 1st Class
Messages
43
Hi,

In MT4 Backtest there is always different type of drawdown and i always get confuse which one to notice.

Can anyone explain what the difference and which is main drawdown.

1. Absolute drawdown
2. Relative drawdown
3. Maximal drawdown
4. Peak drawdown

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shanmugapradeep

Private, 1st Class
Messages
43
I founded some answer myself. Updating here so if someone is searching it maybe helpful.

  • Absolute drawdown – the largest loss is below initial deposit value;
  • Maximal drawdown – the largest loss of the local maximum in the deposit currency and in per cents of the deposit;
  • Relative drawdown – the maximal loss in percents of the maximum equity value and its corresponding money value;

But still searching for peak drawdown meaning :p
 
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