Recent content by Shiva

It appears that I tried to compute MDD for a given security instead of a portfolio with a bunch of securities. No wonder, I was confused! Indeed MDD has no business in invidual security because stop loss will take care of that. Thanks for the answers.

I have a question about MDD (maximum drawdown). If my system generates a signal for a security and you initiate a position (either long or short) in that security, if the security keeps on moving in the direction that is favorable to your position, how do you calculate the MDD? Will the MDD...