Draw Down

The Draw Down Function:

To fully understand this function it is important that the user is familiar with the TrendCatch trading philosophy and what that could lead to in many cases:

It is not a fault by TrendCatch that the price development by the end of a position is going against the original position. Contrary, it is in the nature of the way the TrendCatch algorithm is developed, to find a good entry point that is trustworthy, the trend has to be confirmed, and that is why TrendCatch very often end up with a loss if you stayed in the original position.

Therefore The Draw Down function will only compute an eventually temporary 'loss' before a certain Stop Profit is achieved, as It does not make sense to compute the maximum loss a position eventually will have as the user should not stay in a position until it changes.

The user has to choose the profit goal he/she wants by using the stop profit goal scroll down box.

The function start to compute the Draw Down as soon as it is activated, but eventually Draw Downs before that time will not be recorded.

If a user want to see the eventually Draw Downs for the current trading day, the history function should be used, as that will always show the total Draw Down from the beginning of the day.