Topic: Does/Should the tester's Max Equity Drawdown.....?

Howdy All

Does the tester's Max Equity Drawdown figure take into consideration your Margin that the Broker is holding?

To me it doesn't seem to do that and I only question it because in my brain if it doesn't it would seem to give your strategy a better outlook than actually can be.

You could generate a strategy that would add to your positions either winning or losing and you may have 10 trades open and all with minimal drawdown in actual pips and against your equity but your Margin could almost be at Call point because of the number of trades open.

I try to generate strategies that have only 15% drawdown or less but that means it could still open 20 trades.

Does the tester show that somewhere that I don't know, is there someway else to factor this in? Am I barking at the wrong tree?