• Registered: 2011-01-13
  • Posts: 50

Topic: Down-draw changing with account size. Why?

I noticed that my down-draw changes when I change only my account size:

10k = 1.27%
5k = 1.27
3k = 1.06
2k = 1.58
1k = 3.13

My strategy opens a position size with lots based on a percentage. Is this change in downdraw due to the inability to continue opening a smaller and smaller lot size that is dynamically scaled to account size?

Thanks.

  • Popov
  • Popov
  • Lead Developer
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  • From: Bulgaria
  • Registered: 2006-11-30
  • Posts: 8,024

Re: Down-draw changing with account size. Why?

When you use a percentage entry size, FSB calculates the position lots taking into account current account equity and the constants MinLot and LotStep.
Where MinLot = 0.01 and LotStep = 0.01;
As a result the minimum position amount is 0.01 and every larger amount is rounded to 0.01. Example: 0.02, 0.0.3, ... , 1.01
When the initial account is smaller, the entry size should be smaller too but the limitation is 0.01 lot. Therefore, the percentage value for the minimum available lot size is larger for the smaller accounts.

See this post for an example how FSB calculates position size: Require Margin problem

Popov's Website

  • Registered: 2011-01-13
  • Posts: 50

Re: Down-draw changing with account size. Why?

Kk. That's what I figured, and said in my post.

Thanks for the reply Popov!