Equity Curve

Discussion in 'Risk Management' started by Spectre2007, Jun 12, 2007.

  1. curve

    CAGR% 42.6%
    MAR 1.01
    Sharpe 1.13
    Ann. Sharpe 1.40
    Max Drawdown 42.4%
    Trades 485

    starting capital 250K
    ending capital 1,612,581.00

    Would you be able to handle a 42% drawdown if your curve looked like this?
  2. this is modified one.

    but has a higher drawdown.

    CAGR% 89.3%
    MAR 1.53
    Modified Sharpe 0.87
    Annual Sharpe 0.24
    Max DD 58.3%
    trade 552

    ending capital 7.1 mil.
  3. Are these real equity curves or backtests?
    I doubt institutions would give any trader any money with 50% drawdowns. Unless you're already managing over a billion, then the lemming effect overpowers reason and they'll give you as much as you want.