Well in the game of trading, the market usually rewards you for the risk you are willing to take, as long as you are not exploiting an arbitrage position. I am ready to sit on a 60 to 80% drawdown it must come to it as long as the trades in the live session fall within statistical expectation. I believe the capital required is calculated as the maximum drawdown plus the maximum margin required in the test period.
Makes perfect sense to me to be honest. Its how much capital you will need to to hopefully weather the storm, but if its a hurricane then you can possible lose everything. That is why its usually a good idea to go in with atleast 1.5 times the capital required for a risk loving person like myself and maybe a 5 times capital required for a risk averse person like yourself.
But remember your returns are based on the risk you are willing to take.