XXX% draw down

[CashOutChick]

I read somewhere that this trader will take a maximum of 5% (or whatever %) draw down. Is he referring to 5% on his capital or 5% on his traded margin used? Is that a stop loss for him?

 

[Trader333]

It is probably 5% of his capital before he closes the trade.


Paul

 

[darktone]

I read somewhere that this trader will take a maximum of 5% (or whatever %) draw down. Is he referring to 5% on his capital or 5% on his traded margin used? Is that a stop loss for him?

Or it could be hes prepared to be down 5% before he dives over the back o sofa and sucks his thumb!:smart:

Personally, I prefer to hide under the bed with my teddy!