How much Drawdown is too much, absolute dollar drawdown and drawdown as percentage of proffit?
I am currently adjusting a system I am developing to try and get the best result I can. I am adjusting the system by changing formula parammeters but leaving the money management alone. The problem I am facing is that I can get huge profits but this also increases my drawdown. This brings me to my question
*How much drawdown is too much?
*Is there some ratio that people like to use?
*At What point do people say I will cap my potential profits in order to limit my drawdown.
Would be interested in other peoples thoughts and ideas.