Understanding Cum. Max Drawdown

[Shai Samuel]

Hi, I am trying to understand the logic of how Cum. Max Drawdown. I have this 6 day example below.

• I understand the first 2 days where Cum Max Drawdown and Max Drawdown are the same.
• I understand the 3rd day, where Cum Max Drawdown is bigger than Max Drawdown, due to negative Net Profit on the 2nd day.
• I understand the 4th day where Cum Max Drawdown and Max Drawdown are the same.
• I don't understand the 5th and 6th day, when day 4th finished with a large profit.

Could you help me understand the Cum. Max Drawdown of day 5 and 6?

[NinjaTrader_SeanH]

Hello Shai Samuel,

Thank you for writing a post.

Below I have left you a link to our help guide for the definitions of the statistics within the trade performance window to help you with your request.

https://ninjatrader.com/support/helpGuides/nt8/statistics_definitions.htm

[Shai Samuel]

Sean, Cum. Max Drawdown is not in this list... (Max Drawdown is)

[jlabtrades]

Heres how I understand it. It shows successive multi-trading day drawdowns. If day 1 you lost and day 2 you lost in the same account those losses are added together in cum draw down. I didnt read it anywhere, just how it understand this value

Day	Cum net profit	net profit	cum max draw	max draw	gross profit	gross loss	Account 1	Account 2
0	0	0	0	0	0	0	10000	10000
1	-4000	-4000	5000	5000	1000	5000	5000	11000
2	-4000	0	9000	4000	4000	4000	1000	15000
3	2000	6000	3000	3000	9000	3000	10000	12000
4	-4000	-6000	5000	5000	0	6000	5000	11000