how much drawdown is acceptble

conny.rosenberg@gmail.com
05 Dec 2015, 14:05 ( Updated at: 21 Dec 2023, 09:20 )

RE:

conny.rosenberg@gmail.com said:

wondering how much people here is risking.. ??? Have try to make a bot in quant. Here is mu first beta screenshot

 

conny

kricka
05 Dec 2015, 20:47

Max drawdown

The max drawdown accepted depends on the strategy at place and the trader's risk tolerance. The higher the risk per trade is the higher the drawdown will be overall. So to keep the drawdown low, the risk per trade has to be set to low. The risk per trade can be set between 0.3-1% of the equity with larger accounts and slightly higher with smaller accounts. The total risk of the account with several positions in the market has to be taking into consideration as well regarding the drawdown. What is an acceptable drawdown? Under 10% is very good, around 15% is acceptable, 20% is on the higher side of acceptable.  

Information how to be in control of the drawdown and general risk & money management questions on RMMRobot.com