Copy trading

Bitget Copy Trading: How to calculate maximum drawdown for elite traders

2023-10-30 08:51051

Futures copy trading:

Maximum ROI = maximum ROI from the starting time to the present time

Drawdown = (maximum ROI- current ROI) ÷ (maximum ROI - initial ROI + 1)

Maximum drawdown = the maximum historical drawdown

Example:

Maximum historical drawdown:

Suppose that elite trader A has a maximum ROI of 80% from the starting time to the present time and a current ROI of 67%:

Drawdown = (80% – 67%) ÷ (80% + 1) = 7.2%

Maximum drawdown = the maximum historical drawdown

Maximum drawdown in the last three weeks:

Suppose that elite trader B has a maximum ROI of 80% in the last three weeks (from 4:00 PM 21 days ago to the present time) with a current ROI of 67%. Let's calculate the maximum drawdown for this time period.

Hypothesis:

The ROI at 4:00 PM 21 days ago was 70%, the maximum ROI in the given period was 80%, and the current ROI is 67%:

Then current drawdown = (80% - 67%) ÷ (80% – 70% + 1) = 1.29%

Maximum drawdown = maximum drawdown in the last three weeks