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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