The drawdown in star traders could be very misleading unless a trader trades fully in that account.Let me give you an example?..most of the stars will have 3-4 trading accounts.If I have done a spread trade in options and traded one leg in Zerodha account and the other leg in some other account,due to margins consideration one leg may be in profit and the other leg in loss though the trade makes overall profit. If the losing leg is in Zerodha account,that will show as a drawdown but in real terms the trade may be profitable.This is very likely as earlier there was no concept of star trader,open trade etc so a trader will be ok to make a loss in one account and larger profit in other account.Same thing in futures also as one may initiate a position in one account and close the same in other account depending on margins and brokerage on second leg consideration.
But now stars will try to do the full trade in one account,because drawdown will adversely affect their performance,so after 2-3 months real DD and profitability figures will be known.So DD at present may be giving a distorted picture.
Smart_trade
