How to Calculate Drawdown for Traders

This video shows how to calculate drawdown in a trading strategy using Excel. Drawdown is a fundamental metric for all traders because when we are losing money, we are more likely to make bad decisions and break our rules. I demonstrate how to calculate percentage drawdown from a high, and drawdown duration.
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[@rockin4840]

Mark, if you wanted to filter results for whatever reason, let's say for time periods or whatever, how would the existing formulas be changed to be able to cope with ignoring hidden rows? cheers

[@MarkUrsell]

Hmm, good question. Max Drawdown is a bit tricky with Excel filters because it depends on the previous values. One way is to add your filter conditions into my the rules. So, for example, you could only allow trades on Tuesday. Tradinformed models have a date filter which automatically adjusts the drawdown calculation.

[@correa.cristobal]

Hey there, Mark! I've been following your videos and appreciate them very much. I'd love to ask I'd you've successfully been able to implement Kelly criterion and/or martingale based on your strategy (?). Also, if you were to set up such a management strategy, is it recommended to implement on different timeframes, or should one always work based on one and only one TF? Cheers! Thanks for the vids

[@MarkUrsell]

Hi Cristóbal, this is a good question. I have not yet done either Kelly or the martingale on a spreadsheet but it is on my list. I will have a look at this very soon and record a video.

[@correa.cristobal]

Mark Ursell great to hear! Looking forward to seeing your solution. Cheers, Mark!

[@billmietelski]

Bill was here..

[@thedoctor1742]

@mark ursell hi, it will be of great help from your side if u can help me with my data in sheet!