How did it have a 0% Drawdown??

No doubt you're looking at this page because you saw one of our performance tests achieved a 0% drawdown during a certain month or week. However, our stats system examines BOTH balance and equity drawdowns. This means that as soon as a trade is entered, you have some amount of drawdown immediately because of the spread. A 0% drawdown is impossible unless you refuse to trade.

Here's the deal. The Metatrader 4 software does not track equity drawdowns. You could open up a pile of trades, have a 90% drawdown, and as long as you only close the profitable trades MT4 will report a 0% drawdown. It is our proprietary stats EA that watches the account and records the ongoing equity drawdowns.

On the Forex Verified website, the "Max Drawdown" you see is the GREATER of the balance drawdown and the equity drawdown. We believe this is a TRUE max drawdown statistic that is extremely important.

Back to the question at hand. How did a test achieve a 0% drawdown?

We began using our stats system in October of 2010. However, some of our test accounts had already been running for a month or two before we launched our stats system. When we added these accounts to the new stats system, the existing trades already taken by the account were uploaded into the database. However, the only maximum drawdown figure we have access to is the "balance drawdown" reported by Metatrader 4; we aren't able to see what kind of drawdown was taken on open trades during that time.

This means that if a test account had *no* losses during a month prior to October 2010, it will be reported as a 0% drawdown. After October 2010 we began recording and reporting the equity drawdown as well.

Please Contact Us if you have any questions about this!

We Use and Like: