Max Drawdown Calculation

[Oil_Trader]

Using NT7

How is the max dradown calculated?

Is it calculated from the highest high of equity and lowest low?

Or is it from open and close of each trade? Do you calculated intratrade equity?

I need to clarify how you guys calculate this.



Notice on the image. The LONG Trade has 0% drawdown.

This could mean:

A. the price shot straight up(unlikely).
B. you simply calculate from open and close of trade: ift's positive then there's 0% drawdown, if it's negative then it is a X% drawdown.

[NinjaTrader_Jason]

Hello Oil_Trader,

Please see the link below for information how Max. Drawdown is calculated.

http://www.ninjatrader.com/support/helpGuides/nt7/statistics_definitions.htm

The following forum thread displays how it is calculated when using percentage.

http://www.ninjatrader.com/support/forum/showthread.php?t=32504&highlight=max+drawdown+percent'

If it is a long trade, the calculation is as follows (exit price - entry price) / entry price * 100 = % gain/loss.