I am running backtests in which there can be a very large drawdown (e.g. more than -100%) on short positions yet there's no indication of a large negative position or a long-term series of negative trades. In addition, the overall results show a drawdown in the 30% range.
Two notes: this is a trade on a 3x leveraged fund, and the strategy takes both long and short positions.
Looking for some help in understanding the math.
Two notes: this is a trade on a 3x leveraged fund, and the strategy takes both long and short positions.
Looking for some help in understanding the math.
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Are you using Margin?
Is it really the Position drawdown (where is that shown exactly?) or portfolio drawdown?
Is it really the Position drawdown (where is that shown exactly?) or portfolio drawdown?
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