Traders talk a lot about Trading Drawdowns. But what are they exactly? How are they measured? What do they mean? Can they be prevented? If not, how does a trader deal with them.
In the world of futures and forex, Trading drawdowns are measured based on month-end to month-end net asset value (or nominal account value). I know a number of traders who will measure drawdowns on a week-ending basis. I really do not know many traders who measure drawdown levels on a day to day basis. I was clipped today by about 170 basis points (1.7%), but that is not a drawdown. Day to day asset volatility does not represent a drawdown.
https://www.peterlbrandt.com/wp-content/uploads/2015/06/bigstock-Businessman-Against-Bear-On-Ar-86901197.jpg12801600Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2015-06-09 09:27:512016-06-30 11:09:51What trading over the course of five different decades has taught me about drawdowns
https://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpg00Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2015-05-28 11:05:362016-01-28 13:35:10Why the New Zealand Dollar is headed to $.6000
https://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpg00Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2015-05-20 09:54:092016-01-28 13:35:10A Soybean chart you will see nowhere else
https://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpg00Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2014-10-30 08:56:382016-01-28 13:35:50Chart of the Day — with a Hearty Hi-Ho Silver Away
https://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpg00Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2014-10-24 09:24:142016-01-28 13:35:50The Chart History of the Gold Market — an Updated Edition
https://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpg00Peter Brandthttps://www.peterlbrandt.com/wp-content/uploads/2020/04/TheFactorReport-small-logo.jpgPeter Brandt2014-09-15 12:50:482016-01-28 13:35:50Debunking false claims made by the Silver bulls
What trading over the course of five different decades has taught me about drawdowns
/by Peter BrandtTraders talk a lot about Trading Drawdowns. But what are they exactly? How are they measured? What do they mean? Can they be prevented? If not, how does a trader deal with them.
In the world of futures and forex, Trading drawdowns are measured based on month-end to month-end net asset value (or nominal account value). I know a number of traders who will measure drawdowns on a week-ending basis. I really do not know many traders who measure drawdown levels on a day to day basis. I was clipped today by about 170 basis points (1.7%), but that is not a drawdown. Day to day asset volatility does not represent a drawdown.
Why the New Zealand Dollar is headed to $.6000
/by Peter BrandtA Soybean chart you will see nowhere else
/by Peter BrandtChart of the Day — with a Hearty Hi-Ho Silver Away
/by Peter BrandtThe Chart History of the Gold Market — an Updated Edition
/by Peter BrandtDebunking false claims made by the Silver bulls
/by Peter Brandt