how do you define "drawdown" ?

Discussion in 'Trading' started by marketsurfer, Oct 19, 2005.

  1. marketsurfer

    marketsurfer Sponsor

    do you define drawdown as peak to trough in open positions OR do only closed losing positions constitute drawdown.

    thanks!

    surfer
     
  2. nitro

    nitro

    Point of entry(ries) and current price. So it fluctuates every second.

    You may also want to look into Maximum Favorable Extension and Maximum Adverse Entension.

    nitro