Research method
Drawdown limit
Drawdown limit is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.
- Output
- Research filter
- Input
- Account equity, volatility, stop distance and exposure
- Horizon
- Before entry and throughout the position
- Best use
- Keep a loss or exposure decision bounded before a trade is placed.
- Input: Account equity, volatility, stop distance and exposure.
- Output: filter.
- Use boundary: Keep a loss or exposure decision bounded before a trade is placed.
The graph8
How the method is built, and where it has been read
Depends on
Often reviewed together
Mechanical trading system4 readings
Often reviewed together
Stop-loss order4 readings
Often reviewed together
Optimal f sizing4 readings
Often reviewed together
Leverage control4 readings
Often reviewed together
Diversification5 readings
Often reviewed together
Volatility position sizing6 readings
Often reviewed together
Trading psychology process7 readings
Often reviewed together
Risk of ruin9 readings
This registry entry describes a research method. It is not investment advice and does not make a performance claim.