XXX% draw down

CashOutChick

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I read somewhere that this trader will take a maximum of 5% (or whatever %) draw down. Is he referring to 5% on his capital or 5% on his traded margin used? Is that a stop loss for him?
 
I read somewhere that this trader will take a maximum of 5% (or whatever %) draw down. Is he referring to 5% on his capital or 5% on his traded margin used? Is that a stop loss for him?

Or it could be hes prepared to be down 5% before he dives over the back o sofa and sucks his thumb!:smart:

Personally, I prefer to hide under the bed with my teddy!(y)
 
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