ilmscore | What is Risk Mangement? ( calculating drawdown in a spreadsheet )

What is Risk Mangement? ( calculating drawdown in a spreadsheet )

Published: 2017-02-24
Status: Available | Analyzed

Predictions from this Video

Total: 12
Correct: 0
Incorrect: 0
Pending: 12
Unrated: 0
Prediction
Topic
Status
Becoming financially independent through Forex trading can be achieved in 2-3 years, which is considered 'rich fast' compared to other professions.
"so when you compare that to 2 to three years of studying the markets in order to try to become financially independent or try to become a professional Trader then you can comparatively become rich fast by trading in the Forex Market but if you're using the correct risk management plan then getting rich quick will be perceived in years and not days or weeks or months"
Forex Trading
Pending
The aggressive entry course was launched on February 20th and had an initial capacity of 100 clients.
"I've actually just released the aggressive entry course is currently February 20th and this course is open for 100 clients"
Aggressive Entry Course
Pending
The first 100 clients to sign up for the aggressive entry course would receive full attention from the instructor and a 50% discount.
"so the reason I do that is is so that I can give these 100 people that decide to sign up for the aggressive entry course my full undivided attention and also I'm giving the first 100 people to sign up a half off discount on this course"
Aggressive Entry Course
Pending
The presented backtesting results are for the Euro Aussie pair using the aggressive entry strategy.
"this specific spreadsheet is my back testing results for the Euro Aussie and the aggressive entry that I teach at the EAP and in the aggressive entry course"
Euro Aussie Backtesting
Pending
The backtesting data for the Euro Aussie aggressive entry strategy covers the period from September 17, 2013, to September 15, 2014.
"here we have about a Year's worth of data here on the Euro Aussie aggressive entry back testing results from September the 17th all the way to September the 15th of 2014 and again we're coming from September 17th 2013"
Euro Aussie Backtesting Data Range
Pending
The speaker uses 0.25% of their total account value as risk per position.
"right here as you can see we have 0.25% and the way I use risk management is based on a percentage of my total account value so in this case we're risking 0.25% of our total account balance per position"
Risk Management - Risk Per Position
Pending
Risking 0.25% per position across two positions equates to a 0.5% risk per trade.
"because we're risking this amount for two different positions which would equal a 1/ 12% risk per trade so in this scenario we're risking half of a percent per trade"
Risk Management - Risk Per Trade
Pending
A 2% risk per trade would translate to a 1% risk per position.
"if we wanted to risk a standard 2% per trade that would be 1% per position"
Risk Management - 2% Risk Per Trade
Pending
Increasing risk from 0.5% to 2% per trade resulted in the maximum drawdown increasing from approximately 2% to 9%.
"Max draw down went from around 2% risking a half a percent per trade to 9% risking 2% per trade"
Risk Management - Drawdown with 2% Risk
Pending
A 2% risk per trade strategy achieved a 48% return over the tested period.
"we were able to achieve a 48% return based on that risk"
Equity Return with 2% Risk
Pending
Using a 0.5% risk per position resulted in a 4.9% max drawdown and a 22% equity return over one year on the Euro Ally.
"copying and pasting a half a percent per position now we have a Max draw down down of 4.9% an equity return of 22%"
Risk Management - 0.5% Risk Per Position
Pending
Risking 2% per position (4% total risk per trade) could lead to an 18% drawdown and over 100% equity return.
"take this number and bump it up a notch to let's say a 2% peros or 4% risk in total and this would create a much larger draw down which I'm not necessarily comfortable with at around 18% but your Equity return becomes over a 100% return"
Risk Management - 2% Per Position Risk
Pending