The single trade drawdown of a strategy DOES matter. Recently someone seemed to express dislike for my strategy How I Invest 1 posting the comment:
and a 54% drawdown… with trades risking as much as 12% of capital:
Link
They also posted the screenshot below highlighting a trade where that cost the strategy roughly 12% of capital.
I have had some good conversations with this user before in other threads and have nothing against them. I am unsure exactly how they intend the statement and screenshot, but I take it to mean they are not impressed with my strategy. I appreciate their concern, but likely would disagree with their view of how problematic it is. Let me explain.
Continue reading “Does Trade Drawdown Matter?”
How I Invest 