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
 

Excel Facts

Select a hidden cell
Somehide hide payroll data in column G? Press F5. Type G1. Enter. Look in formula bar while you arrow down through G.
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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