Hello Guys.
I just started Using Streak, what is the Maxx DD in the backtest in streak
?
It means draw down. That is the maximum downside to the strategy.
501.78%, thats a great strategy, but the number of signals scare me.
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Kindly note that the Max DD values are in percentage( %) terms. In simple terms, the -177.0000 figure can be interpreted as a 177.00% of Max drawdown in your Profit and Loss curve from the Peak, for the backtest period. Refer to the below link to learn more about this-
https://help.streak.tech/backtest/#more-on-maximum-drawdown
For example-
If in the PnL curve your Profit reached the level of 49.4 rs and this is the highest PnL for the backtest period (peak), now after this if the PnL falls to -8708.753357 (this is the trough after the highest peak), then the Max drawdown will be calculated for this fall and the calculation will be as follows:
Max DD= (Peak-Trough)/Peak = (49.4 - -8708.753357 ) / 49.4 = -177.29. Which basically means a 177.29 % fall from the peak.
Do note that for Max DD the closer the Max DD value to 0 the better. For eg: the max dd of 0.97 is better than 1.53. Similarly, a max dd of -0.12 is better than -0.93. The lower the value, the better. It should ideally be as close to 0 as possible. If a strategy never made a loss-making trade, the Max DD would be zero.
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Thank you
If a trade makes all losses, will it show max dd as 0? Will that not be a problem?