How to calculate "Maximal relative drawdown" on Social Trading?

Maximal relative drawdown shows a percentage of losses in an account.

It’s calculated using the formula :

Max ((MaximalPeak – NextMinimalPeak) / (MaximalPeak + 100) * 100) (%)

where:

Max — the highest relative drawdown value;
MaximalPeak — the upper extremum value corresponding to Max in the profitability chart;
NextMinimalPeak — the lower extremum value following MaximalPeak in the profitability chart.

How to calculate Maximal relative drawdown

Example of relative drawdown calculation for the chart above:

Let’s estimate the extremums of the profitability chart (“H” for the highest and “L” for the lowest)

Relative drawdown values are calculated as follows:

PercentDrawDown1 = (H1 – L1) / (H1 + 100) * 100 = (80 – 50) / (80 + 100) х 100 = 16,67%
PercentDrawDown2 = (H2 – L2) / (H2 + 100) * 100 = (90 – 35) / (90 + 100) х 100 = 28,95%
PercentDrawDown3 = (H3 – L3) / (H3 + 100) * 100 = (135 – 40) / (135 + 100) х 100 = 40,43%
PercentDrawDown4 = (H4 – L4) / (H4 + 100) * 100 = (195 – 65) / (195 + 100) х 100 = 44,07%

MaxRelativeDrawdown = 44,07%