A questions about drawdown calculation

Discussion in 'Trading' started by intserv, Jan 3, 2011.

  1. intserv

    intserv

    a newbie question. bear with me please.

    what data points to use for absolute drawdown calculation? 1 or 2 or something else?
    1. equity curve: lowest point with the entire holding period involved.
    2. trade profit curve: not looking into the entire holding period. instead, data point (the actual loss) taken only when a position is closed.

    thanks
    Jeff