What kind of drawdown percentage is reasonable to you ?

What kind of drawdown percentage looks reasonable to you ?

  • below 5%

    Votes: 14 15.7%

  • 5%-10%

    Votes: 20 22.5%

  • 10%-20%

    Votes: 25 28.1%

  • 20%-30%

    Votes: 9 10.1%

  • 30%-40%

    Votes: 7 7.9%

  • above 40%

    Votes: 14 15.7%
  • Total voters
    89
Max drawdowns is the FIRST stat I would want to see.

Hobbyists that are trying to turn 20K into 100K...
May reasonably tolerate drawdowns in the 20-30% range.
(Anything more than that... your risk of ruin is almost certain).

Professionals running a stable million dollar business...
Might limit drawdowns to 5%... or 10% in the most extreme conditions...
Otherwise your business is not "stable".

And over the last 7 years... my biggest drawdown is about 4%.
Hedging properly and scalping very actively... limits drawdowns to very tolerable levels.
 
I'd have a hell of a time coming back from 10-20% DD.

5-10% is doable for me, but beyond that I'd have to re-evaluate my strategy.
 
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