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Return and Drawdown calculation

Apparently there is a probleme; it seemed very clear to my.

I’m going with another exemple.

I open a trade account with 1250 $, I lost money at eh begining and after I win.

At the and of the week I have 1100 $ .

Have I won or lost money, calculate it in %.

thanks for the reply. I’m waiting some other answers so I can expose my real probleme.

You would have lost 12%!

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Thanks for the answer.

Exactly, there can’t be a differente number.

So I wont someone to explain me what sort of mathematics darwinex use to find this ?

This is the strategy and not the darwin.

Yeahhh !

(1250-1100)/1250=0.12 (12%)

@DAIICHI gains while losing Lol

Bot NOT, what’s the problem with this poor strat ?

You are positive return, so you win. If the first K was 125$ and now 111$, so it’s a really problem as you imagine.
Edit: Do you have add and/or withdraw fund @DAIICHI ?

Nota: Not the subject of this topic: maxDrawdown.

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We are speaking about strategy underlying darwin GIF .

A 100% public profile on myfxbook could help to solve the mistery.

MyFxbook has nothing to do with the manner darwinex calculate return.

There isn’t mistery for darwinex guys.

Here you are asking to community not to support.
If you want to solve your problem you have to provide the necessary data, as asked by @TheCheetah .

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Hi everyone!!

If we had only taken into consideration 2 points in time (initial and final position) with its respective equity it is obvious that the yielded result would’ve been -12%. However, Darwinex applies the geometric mean formula using the % returns of the 710 positions with a current return since inception of +9.94%.

.

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@JesusDarwinex
So the Gain/Growth on myfxbook would be positive or negative?

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@CavaliereVerde that´s a very good question that cannot be answered by me, I guess :wink:

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Thanks for the answer.

May I ask why you have choose geometric mean formula and non initial and final position?

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You’re welcome!

The reason is because a trading strategy could create a Darwin, which in turn could be invested at any time by any investor. Therefore, it is extremelly important that this metric is constantly and accurately updated.

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Hello everyone.

Trying to understand how drawdown works. In help I dont understand how darwines calculate drawdown. It looks like is a sum of all unsuccesful days and it cant decrease only it can grow?

If I make 10percent loss today, tomoriw I make 20 percent win than on 3rd day again I make 10percent losd is it 20 percent drawdown?

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You have 100$ and you lose 20 , it is 20% drawdown.
You recover those 20$, yuou lose 10$ the max drawdown is still the first: 20%.

Drawdown is the depth of you highest loss, the duration of a drawdown is called stagnation.

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Thanks for the explanation, now I see how they calculate it but lets calculate this example:
I lose 20 usd from 100usd it is 20 percent drawdow and than I extremly successful and increase my balance to 1000usd and lose 200usd. My drawdown still remains same 20percent?

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Yes, that’s correct.

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I originally started this on a new topic but since found this so I may aswell put it here and delete the other post.

I have noticed some places the drawdown is measured based on live P/L, i.e. mark to market. Is this the same with Darwinex?

(I did do a search on here for mark to market but nothing came back)
(I also read the article by Darwinex on drawdown but it did not specifically answer my question)

Yes, drawdown is measured based on your live equity.

A post was merged into an existing topic: Drawdown (since inception) shown can be misleading