🏆 The ROI: Your Engine (Return on Investment)
ROI is the "Glory" stat. It tells you how much profit a trader has generated.
The Trap: High ROI (like +500%) looks sexy, but it often hides extreme danger.
The Pro Strategy: Look for a Steady ROI. A trader who consistently hits +10% to +20% monthly is often better than a "Moonshot" trader who doubles an account one day and loses it the next.
🛡️ The MDD: Your Brakes (Maximum Drawdown)
MDD is the "Truth" stat. It measures the biggest "dip" or loss a trader took from their highest point.
The Rule of Thumb: If a trader has an MDD of 50%, it means at one point, their portfolio crashed by half. That’s a massive red flag!
The Sweet Spot: Aim for traders with an MDD below 15-20%. This shows they have iron-clad discipline and professional risk management.
⚖️ The Golden Balance
High ROI + High MDD = A Gambler. (Fast money, faster losses)
Moderate ROI + Low MDD = A Professional. (Sustainable wealth)
Don’t just chase the green numbers. Look for the trader who wins big but loses small. That’s where the real millions are made! 💎
#SmartTrading #ROIvsMDD #RiskManagement