What is start trade drawdown? In summary, it represents your out-of-pocket losses when starting to trade a new system. This is money
that comes out of your initial starting capital. We find this type of drawdown to be much more useful when embarking on a new system
since this is how much you will be down before you go into the black and start having a net profit in your account. See the chart below.
We begin our trade on Week 1 (Point A), and right off the bat, it goes against us. By Week 2 (Point B), our losses have amounted to
$3,000, but then things start to turn in our favor. By Week 3 (Point C), we have erased our losses and are actually making an open trade
profit here of $2,000. By Week 4 (Point E), however, things have turned against us again, and by the time the trade is closed out we end
up with a net loss of $2,000.
giving back to the market.
trade. When starting to trade a new system, the Start Trade Drawdown will represent the maximum out of pocket losses that you will first
suffer through before you finally go on to start making profits. We find this drawdown to be the most useful when starting to trade a new
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