How to use your margin with low risk?

[meatyoaker]

This may sound strange but making 5% a year with 5% maximum drawdown is much, MUCH better than making 15% a year with 50% maximum drawdown!

Because the trader can now use more leverage and compound his profits at a much faster rate, because his drawdown is 10 times smaller (in this example).

How much leverage would you apply on the original 5%/-5%? Go 10x bigger for 50%/-50%?