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Definitions:
Each time you close a profitable trade and take your balance up above the starting balance, your Maximum Drawdown level moves up. The Relative Drawdown is the distance between the closed balance high (your high water-mark HWM) and the Maximum Drawdown.
The Relative Drawdown remains the same value until the trader makes a closed balance profit equal or higher than the Relative Drawdown amount. At this point the Max Drawdown point locks in and the trader can increase the Relative Drawdown by trading further up.
Relative Drawdown moves up with a positive trade balance. It does not move down with a negative trade balance.
Example: On a $100,000 Program an individual makes a profit of $1,000. They now have a closed balance of $101,000. The maximum Drawdown moves from $94,000 to $95,000. The original Relative Drawdown percentage of 6% does not change.
When the trader makes a closed profit of $6,000 (6%) or more the Max Drawdown locks in at the starting balance. Balance now $106,000, Max Drawdown at $100,000. Relative Drawdown remains the same at 6%.
Now when the trader moves up with a positive closed balance that is higher than 6%, the Relative Drawdown increases proportionally.
Example: On a $100,000 Program an individual makes a profit of $1,000. They now have a closed balance of $101,000. The maximum Drawdown moves from $90,000 to $91,000. The original Relative Drawdown percentage of 10% does not change.
When the trader makes a closed profit of $10,000 (10%) or more the Max Drawdown locks in at the starting balance. Balance now $110,000, Max Drawdown at $100,000. Relative Drawdown remains the same at 10%.
Now when the trader moves up with a positive closed balance that higher than 10%, the Relative Drawdown increases proportionally.
Example: On a $100,000 Program an individual makes a profit of $1,000. They now have a closed balance of $101,000. The maximum Drawdown moves from $94,000 to $95,000. The original Relative Drawdown percentage of 6% does not change.
When the trader makes a closed profit of $6,000 (6%) or more the Max Drawdown locks in at the starting balance. Balance now $106,000, Max Drawdown at $100,000. Relative Drawdown remains the same at 6%.
Now when the trader moves up with a positive closed balance that higher than 6%, the Relative Drawdown increases proportionally.
How Does a Withdrawal Affect Relative Drawdown?
All withdrawals reduce the trader’s Relative Drawdown by the same amount.
It is recommended that traders only withdraw an amount that is smaller than their Relative Drawdown and allows them space to continue trading the account up. Our successful long term traders understand their personal trading statistics and build themselves a Relative Drawdown buffer to suit their personal trading style.
A trader who withdraws a sum equal to their Relative Drawdown will not be able to continue trading the account.
Daily Drawdown is a trading balance level the trader cannot trade down through each day. At 23:59 server time each day, the balance (closed trades) of a trading account is measured, and the calculation is sent to the trader’s dashboard.
The Daily Drawdown is a new level each day and does not move from this point during the day no matter how the trader trades.
Daily Drawdown is not the same as Max Drawdown. It is possible for Daily Drawdown to be a lower level than Max Drawdown.
Relative Drawdown works exactly the same on all live account programs as their corresponding evaluation accounts.
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Los resultados de estos servicios están directamente relacionados con el nivel de habilidad profesional de cada individuo y su capacidad para seguir las directrices y objetivos del programa detallados para cada servicio. Animamos a los clientes a realizar una revisión exhaustiva de los requisitos del programa antes de inscribirse en cualquier servicio.
Divulgación sobre el Rendimiento Hipotético: Las cuentas utilizadas para nuestros servicios son cuentas de demostración. Los resultados de rendimiento hipotético tienen limitaciones inherentes, entre las cuales se incluye el hecho de que no reflejan el trading real.
No se afirma que ninguna cuenta logrará o es probable que logre ganancias o pérdidas comparables a las discutidas; en realidad, los resultados reales pueden diferir significativamente de los predichos por el rendimiento hipotético. El rendimiento hipotético a menudo se beneficia de la retrospectiva, no tiene en cuenta el riesgo financiero y no puede considerar el riesgo financiero en el trading real. Por ejemplo, la capacidad para soportar pérdidas o para adherirse a un plan de trading a pesar de las pérdidas son factores cruciales que pueden afectar negativamente los resultados reales del trading. Muchos otros factores del mercado o aspectos de la implementación de un programa de trading específico que no se tienen en cuenta en la preparación del rendimiento hipotético también pueden afectar negativamente los resultados reales del trading.
Por favor, tenga en cuenta que no ofrecemos asesoramiento de inversión específico, consultoría empresarial, análisis de oportunidades de inversión ni recomendaciones generales sobre instrumentos de inversión para trading. El trading en los mercados financieros conlleva un alto nivel de riesgo, y recomendamos no arriesgar más de lo que pueda permitirse perder.