Discussion in 'Professional Trading' started by bdraws, Nov 27, 2005.

  1. bdraws


    How is a drawdown calculated? Is it the same as taking your STD Deviation * 2.33?

    I see this talked about all the time, but coming from a sell-side prop desk we never used the "drawdown" terms?
  2. If your acct HIGH point was say, $100K in August but now your acct equity is $80K, then you are experiencing a 20% drawdown.
  3. lately


    FYI... and just to clear up, I believe they're all expressed in realized p/l.
  4. Why not marked-to-market?