Author Topic: max drawdown and max loss  (Read 979 times)

bill2w3@gmail.com

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max drawdown and max loss
« on: July 05, 2017, 01:48:00 PM »
what is the difference between max drawdown and max loss - max loss is set at 7% and max drawdown is set at 20% -  I don't understand the difference between the two - thank you

Sacha

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Re: max drawdown and max loss
« Reply #1 on: July 06, 2017, 06:58:00 AM »
Max drawdown is the maximum "loss from highest point" that was hit after you bought. It is not actually a loss but a notional loss that you could have avoided if you had sold at the highest price your stock reached after you bought.

Max drawdown field is there to close the position and cut the drawdown more than specified value.

You can also read about drawdown on internet, e.g. here http://www.investopedia.com/terms/d/drawdown.asp.

Thanks,
Sacha
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