IMHO - yup. IMHO - nope. (Unless you were previously at an equity curve peak and your last trade was a loss) I would describe drawdown as the drop in your equity curve from it's highest point. You could have variations on that such as 'current ...

What drawdown does everyone use?

ch33z3, Can you be a bit more specific? In a worst case scenario, does your trading system exhibit a 5% drawdown over a certain timeframe, or do you mean that you are willing to lose 5% per trade? Because, from what I understand as drawdown, 5% ...

What drawdown does everyone use?

Sorry Fastbusiness, but I don't quite agree with you there. I sat on a cross currency hedge for 7 months this year and it doubled my account. Pure gambling it was not. A lot of research was invloved before and during the trade, but in the end it ...

Arbitrage with no-interest broker

Surely, GBP/JPY and NZD/JPY bith have pip values of $0.85 per pip (for a US$ account) so how can one be worth less than the other? Bonus points for an 'Airplane' quote in the response!!

NZD/JPY