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Welcome to our Knowledge is Power Resource Guide, providing free information to get you on the road to success todayMB.ORG Recommends Marketing Your Financial Website, Trading Product or Trader Services HereClick-Above to Advertiseby using a mortgage broker to locate mortgage loan lenders competing for your mortgage, home equity loan, line of credit, or mortgage loan refinancing.Click-Below if looking for: Mortgage Knowledge Articles Mortgage Loan DirectoryMortgage BrokerA good Federal Loans Mortgage Loan Broker Knows Secrets To Get Your Mortgage Loan Approved!Make us your home page MB.org is looking for financial capital, funding and investors so please reply with details on the possibility of making an investment in this Website/Domain..." Invest in this site Advertise on this siteMy Broker"How to successfully trade commodity futures, options, stock indices, stock market & forex markets" Two Ways To Report Max Drawdown. One Is Much Easier To Take Maximum drawdown excursion is a very important figure which is normally reported as one of the major factors in analyzing a trading system by historical testing software. It is generally defined as the greatest decrease in equity at any time during the testing period under consideration and it is usually reported both in terms of actual dollars and as a percentage. Click-here to Learn how to trade forex in 90 seconds!Recently I realized various in testing software programs about how to make money in commodities trading differ in how they report this figure. The two biggest variations seem to center around whether or not the maximum drawdown figure is based on closed trades only, or both open and closed trades. Open and closed trade calculations: When maximum drawdown is based on open and closed trade equity it will tend to vary every day that any trades are in progress. The benefit of this figure is that it monitors daily fluctuation in equity throughout a trade or a portfolio of trades. The limitation of figure is that it counts losses of open profits as actual trading losses. For instance, let's say you are trading a system and you currently have open trades in 4 markets: JY, SF, BP and DX. All the financial markets are moving well and you have a current open profit of $5,000 per market or $20,000 total. Then, as it often happens, the markets move against you and your long-term system doesn't get you out until you have lost half of your open profit. So, you exit the 4 trades with $10,000 in profit. This would be common of many long-term systems which allow a market to move a large amount against you before exiting the trade as a trade-off for giving the market room to stay in the major moves. The problem is that these 4 profitable trades will be reported as a $10,000 drawdown since you had a $10,000 loss in open equity. If this period were immediately followed by an exte
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