P Pipflow Jun 5, 2013 #11 Calculate the number of pips back up you want to have in your trading account and then according to the capital money you have calculate the drawdown amount and maintain that much capital money for trading.
Calculate the number of pips back up you want to have in your trading account and then according to the capital money you have calculate the drawdown amount and maintain that much capital money for trading.
G Ghost of Cutten Jul 26, 2013 #12 Quote from dom993: A simple formula is: Capital = 3*MaxHistoricalDrawdown + Margin The 3 multiplier puts you on a reasonably conservative foot, using 2 instead of 3 for that multiplier is quite aggressive. More... To make it even more accurate, use maximum likely future drawdown if it is bigger than the max historical drawdown (which is usually the case).
Quote from dom993: A simple formula is: Capital = 3*MaxHistoricalDrawdown + Margin The 3 multiplier puts you on a reasonably conservative foot, using 2 instead of 3 for that multiplier is quite aggressive. More... To make it even more accurate, use maximum likely future drawdown if it is bigger than the max historical drawdown (which is usually the case).
