Say I am running an ea that has been backtested for all of 2008 that came out with $67,000 profit on a $20,000 initial account…
The maximal drawdown was 11%
the relative drawdown was 21%
So does this mean at any given time, the most the ea will risk in a trade is 11% of the account equity?
Does my question even make sense? lol
just because historically your biggest draw down was 11% doesnt mean that in the future your biggest will be 11%
then was a different market
now is a different market
and tomorrow will be a different market
just means in 2008 had you been using your system you would have only had a 11% drawdown but lets say it was in 2011 and you where backtesting threw 2010 it could be that the biggest drawdown was 22% and biggest gain was 11% some systems avg +% returns one year and -% returns another year its never the same but the more extensively you test the closer to get to actual prob and %'s
law of large numbers also if your test tests once per week or once per day - serval times per day the stats drawdowns and % gain will be different
also as much as people love to say it im not sure how much i agree with the idea that historical data acts the same as what will happen in the future im not a real history repeats itself kinda guy
Don’t believe a word of it!! 
Past records are no guarantee of future success.
Great in theory. 
But thats just it - theory.
Many strategies battle to have a 50% success rate.
Most do far worse.
Experience with money management is the key.
[U]Have a read of this very powerful piece of literature…[/U]
Hello Friends,
I don’t say any broker bad. But i would only say that do search about them. Like i have done before shaking hands with my broker AVAFX. I search on the internet for forex brokers and i got a huge list of brokers on my computer screen.
I searched for all the brokers in the list. From that list i selected few brokers and made more research about them. They were Iforex, easyforex, money-forex, AVAFX etc. From these brokers i liked AVAFX and money-forex because they provide daily news and updates about the market and provide nice trading tips and analysis. So in this way you can search for brokers and you will not loss your hard earned money easily.
Happy trading