MT4 Relative Drawdown

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Can someone explain to me how relative drawdown is calculated on mt4 detailed performance? I understand maximal but not how relative is calculated.
 
trumpjr:
Can someone explain to me how relative drawdown is calculated on mt4 detailed performance? I understand maximal but not how relative is calculated.



Relative drawdown percentage (#1 in the figure) is the max value of maximal drawdown in percentage (#3 in the figure) achieved during the simulation. Relative drawdown (#2) is the corresponding drawdown achieved.

 
trumpjr:
Can someone explain to me how relative drawdown is calculated on mt4 detailed performance? I understand maximal but not how relative is calculated.

Hi, was just googling the same question. The answer seems to be pretty rare so I'll post it here. This is a direct copy of a post by Ronald Raygun at Forex Factory.


  • Relative drawdown is a ratio between the maximal drawdown and the value of the corresponding local maximum of the equity. This coefficient shows losses, in percents of equity, experienced by an Expert Advisor;
  • Maximal drawdown is the maximal difference between one of the local maximums and the subsequent minimum of the equity;
  • Absolute drawdown is the difference between the initial deposit and the smallest value of the equity. In other words, this parameter shows how much below the initial deposit level the Participant's equity has ever fallen.

 

How much relative dawndown must be? between?

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