Why Is Max Drawdown Important In Trading?
Drawdown is very important for a trader because they play a huge impact in your compounding abilities. Huge drawdowns might force you to stop trading, it even might lead to ruin, and it makes your returns lower.
Opposite, low drawdowns can make leverage useful and make your trading scalable.
Next Question - How much drawdown can you handle before you give up?
All algo trader, options traders are invited to share their answers and let's see who comes up with the best answer.
I would appreciate it if you could share as much as possible.