I thought that I would bring this thread back to life!

I have been thinking about draw down and how to avoid it and then I got to thinking it would be quite useful to know what the maximum draw down for a market has historically been. At least that way we have something to gauge our own strategies draw down against. So I wrote this very simple strategy. Run it on any market on any time frame and the draw down in your results will be the maximum draw down for your available data. This can be displayed as a value or a percentage of the closing price.

There are two graph lines. One is the biggest all time draw down and the other is the current draw down which is valid until a new all time high is made.

ITF file also attached.

[attachment file=73099]

// Biggest Draw Down Analysis Tool 
//By Vonasi
//13 June 2018

//Percentage = 0

IF High > lastHigh then
LowestLow = low
LastHigh = high
ENDIF

IF High < LastHigh then
LowestLow = Min(LowestLow,low)
DrawDown = LastHigh - LowestLow
BiggestDD = Max(BiggestDD, DrawDown)
endif

IF Percentage then
DrawDownRes = (DrawDown/close)*100
BiggestDDRes = (BiggestDD/close)*100
ELSE
DrawDownRes = DrawDown
BiggestDDRes = BiggestDD
ENDIF

return -DrawDownRes coloured(0,0,255) as "Draw Down", -BiggestDDRes coloured(128,0,0) as "Biggest Draw Down"

Screenshot_1-6.png Biggest-Draw-Down-Tool.itf