My Daily Blog is at: http://investorandtrader.blogspot.com/
My channel at BlogTV is: http://www.blogtv.com/People/Airelon
Why keep track of your drawdown? After all, we just want to trade right? You just want to focus in on the reward, whether it be from the Forex, Commodity Futures, or Stock Markets, right?
Drawdown assists you in understanding the worth of a system or method as well. If the person offering the system refuses to talk about the drawdown numbers of that system? That's a good indication it's a scam and highly overrated. If the person offers you a system or methodology and talks about drawdown - this lets you know that the system has verifiable merit that you can test.
But what does drawdown tell you about your system, and how you should adjust the rest of your money management strategy?
We discuss that in the following vlog entry ...
NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance. Included Music is by Paul Young. A personal friend and is not a part of any music license, recording label, etc
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