Hi,
I would like to hear your opinions how to best optimize a strategy, so that it escapes the trailing drawdown of a prop firm challenge or funded account with highest probability. My problem is that I am used to testing under normal circumstances with a starting capital, then I can run Monte Carlo Sim to understand my risk of ruin. But with trailing drawdowns of prop firms the risk of ruin is much higher and I have problems finding a good way to handle this. The only thing I can think of is trying to get the equity curve as smooth as possible, but that is something we always want anyhow.
I would like to hear your opinions how to best optimize a strategy, so that it escapes the trailing drawdown of a prop firm challenge or funded account with highest probability. My problem is that I am used to testing under normal circumstances with a starting capital, then I can run Monte Carlo Sim to understand my risk of ruin. But with trailing drawdowns of prop firms the risk of ruin is much higher and I have problems finding a good way to handle this. The only thing I can think of is trying to get the equity curve as smooth as possible, but that is something we always want anyhow.
