Drawdown formula problem

MonsterMan

New Member
Joined
Jul 24, 2018
Messages
13
Hi folks, looking for a little help again. I am trying to do a small ‘drawdown’ sheet for my trading account. I use a 3 to 1 risk ratio. I am willing to risk ‘1’ (2% of my account) to make ’3’ (6% gain).

Each time I lose a trade, I lose 2% of my account, so 4 consecutive losing trade, means I have lost 8% in total, then the next trade is a win. If the trade is a win, the ‘Risk to Return Ratio’ will be 3; if I lose, the ‘Risk to Return Ratio’ will be 1.

Is there a formula that will add to a losing trade, concurrently in the ‘drawdown’ Colum until there is a win trade? Once the next trade is a winner, the drawdown will revert to 0%, until the next losing trade. Sure, hope that make sense.

I have uploaded a pic to show how it should look, on the drawdown colum. https://imgur.com/BucWal7
 

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This worked on your sample and can be altered for additional factors:


Excel 2010
BCDE
4Win/LossRisk to return ratioReturnDrawdown
5W36%0%
6W36%0%
7L1-2%-2%
8L1-2%-4%
9L1-2%-6%
10L1-2%-8%
11W36%0%
12L1-2%-2%
13W36%0%
14W36%0%
15L1-2%-2%
16L1-2%-4%
17L1-2%-6%
18W36%0%
19L1-2%-2%
20W36%0%
Sheet7 (3)
Cell Formulas
RangeFormula
E5=MIN(D5,0)*(ROW()-LOOKUP(2,1/($E$4:E4>=0),ROW($E$4:E4)))
 
Upvote 0
Also works on this particular sample:


Excel 2010
BCDE
4Win/LossRisk to return ratioReturnDrawdown
5W36%0%
6W36%0%
7L1-2%-2%
8L1-2%-4%
9L1-2%-6%
10L1-2%-8%
11W36%0%
12L1-2%-2%
13W36%0%
14W36%0%
15L1-2%-2%
16L1-2%-4%
17L1-2%-6%
18W36%0%
19L1-2%-2%
20W36%0%
Sheet7 (3)
Cell Formulas
RangeFormula
E5=IF(D5>=0,0,E4-0.02)
 
Upvote 0

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