That's just hogwash! IMV... if you CAN take a 50% drawdown, you should NOT be trading. It's just a matter of time before you're busted.
A backtest result that is giving me a 2.5:1 YearlyReturn:MaxDrawdown ratio is a big NO-GO for me. Too risky. I am aiming at a ratio around 10:1 or higher. A 50% drawdown in backtest will probably result in a 75% drawdown in real trading. Who can possibly recover from that type of loss??? I don't see a guy/gal saying "bah...no big deal, I just lost 3/4 of my money, I'll do better soon, I just need to keep going"... Backtest results are somewhat useful, but it has big limitations. It's only the first step when developing a new system/strategy/model for trading.
The S&P makes what 10% a year on average? but you have to suffer circa 50% drawdowns sometimes, twice in recent memory. And millions of people investing in the S&P 500 over the long run where such drawdowns are likely to happen again. The OP reckons he can do 100+% returns with same sort of drawdown risk as the S&P 500 and you guys want to run for the hills.
If you invest in the S&P 500 for the long haul you better expect 50% drawdowns at some point for your paltry 10% a year returns.
Please excuse my mentioning that I think that's a terribly misleading characterisation of what's been described in this thread. The OP has those huge drawdowns all the time, whereas with the S&P they're rare. That's really a hugely different proposition. I'm not so much "running for the hills", but certainly I'm mentally dividing all the figures (drawdown and profit) by about 15, to make the apparent drawdown-risk acceptable, before seeing how good the profits look. Just my perspective (well, maybe not "just": it would clearly also be the perspective of any serious potential backer/institution ... not that they'd be willing even to look at theoretical results and/or results without slippage being included anyway, obviously). I have the feeling that (perhaps not for the first time) you've neatly summed up there, in two words, what somehow took me a few paragraphs to say.
Chart of distribution of profits is in % and not money need to have guts to trade this system To withdraw profits each year would be prudent thing to do