Hi Petko,
Yeah its more a good R/D (>1) I am aiming for rather than just a small drawdown. I’m aiming to have a go at some trading challenges like FTMO, myforexfunds etc and they all require about a 10% profit with a maximum 10% drawdown in a month so I figure if I can keep my R/D > 1 then have a decent shot of passing.
Sounds like we agree on the diversity of assets and strategies being the best way of controlling drawdown. I do include it when I am filtering strategies but I feel a well put together portfolio would have a much bigger effect on controlling drawdown.
Its also a shame the EA studio cant create a combined portfolio of different assets so can see the true combined drawdown.
Currently I just sum the drawdowns for all the pair portfolios and then multiply by a factor of 0.6 as an estimate, assuming that its reasonably conservative that most will be on their worst drawdown at the exact same time. I’m sure in many cases it would be a lot lower than this though but its the best I have come up with for the time being though.