Can anyone explain Drag Down difference

[shanmugapradeep]

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

 

[shanmugapradeep]

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