CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. -- % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Precision of DARWIN drawdown data

For each year of a DARWIN track record, there’re more than a million quote data values. It’s not viable to calculate drawdown off tick-level data, not even off minute-level data.

DD since inception (upper section of DARWIN profiles)

The input data for calculating “DD since inception”, like most of other data displayed in the upper section of a DARWIN profile, is taken…

  • every 6 hours for the last month,
  • every 12 hours for the last 3 months, and
  • every end-of-day (EOD) for the rest of the track record

This is the data used for the filter criteria “Drawdown” and “Return / Drawdown ratio”.

Max. Drawdown (next to DARWIN return graphs)

The “Max. Drawdown” displayed next to DARWIN return graphs is an estimation based on what’s shown on the graph. What’s shown on the graph depends on the selected timeframe. It’s not taking into account 100% of the values shown on the graph. Therefore, it must not match the value shown as “DD since inception” in the upper section of a DARWIN profile, not even when the timeframe selected for the graph is “All time”, though the two values will converge.

5 Likes

Hi Bianka,

Thanks a lot for explaining the issue!

I personally think that max DD stats are absolutely essential. Even Myfxbook is able to calculate and store drawdown data on the basis of 5 minute intervals permanently. And in times of cheap data storage I think that also 30 second intervals are not a big challenge from a technical point of view. So I hope that Darwinex will improve the max DD calculation setup since I think this will “restore” the investors’ trust!

Best,

Ben

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In this thread someone mentioned every tick as being the FXB DD recording frequency. Do you have a ref that states 5m?

Hi bendex,

When connecting an account to Myfxbook the respective user can set/define the respective “upload frequency” of the account statement to Myfxbook. By default this is set to 5 minutes but theoretically said time interval can be decreased to 1 minute (that’s the lowest allowed value). Nevertheless Myfxbook overall is not very accurate, they have many issues of performance stats calculation since summer 2017. Here’s an example [please compare max DD stats with the growth curve]:


https://www.myfxbook.com/members/MaximilianH/ig-khuyo-zen-eurusd-h1/2106113

Best,
Ben

1 Like

Ah OK but with the data they get every x minutes, it’s possible for them to calculate what your DD was at every tick.

The screenshot is humbling, I guess every platform has it’s issues. Looks like a bug. Hope they get it fixed soon.

Myfxbook “by default” can’t calculate your performance more accurate than based on your “n minutes” data. However since they are connected to all brokers’ price feeds they theoretically could AFTERWARDS re-calculate what happened BETWEEN your statement uploads. However - based on my “Myfxbook experience” regarding the “live watching” of performances I doubt that they do so. In any case they have many random stats calculation errors since summer 2017 and they know this (I had a long discussion with them about that two years ago).

hence the word WAS when I said

Thanks for your opinion, the only info I could find on frequency was the post I linked above and nobody seemed to argue about every tick being the frequency at that time. In your screenshot it looks like FXB recorded the draw-down correctly and used the correct data to display the chart and then the DD stat was not calculated correctly. In other words it looks like a bug rather than a recording frequency issue. To be fare to all other FXB accounts they would have to calculate all accounts to the same frequency which would involve some kind of post calculations.

Sorry for getting off topic and being argumentative, I sent an email to FXB support asking if it is calculated for every tick.

I agree with your original point! Darwinex DD data recording frequency is important and hopefully it can be improved somehow especially considering FXB calculates for all brokers and Darwinex only needs to calculate for Darwinex trades. Darwins are more complex though than their underlying accounts…