Hello Andrew, I meant trade returns. However, indeed the same parameter for equity balance would be also useful.

What am I trying to do: When you have your back tests done, your strategy is solid and you proceeed to live trading. I am talking about the tool, or rather calculated parameter „annualized volatility“, which suggests you a new "scaling" of your strategy before you switch to live trading in order to resist the psychological stress during drawdown period. Simplified simple example, Back test: trading capital 1000, risc per trade 0,5%, no reinvesting, max. drawdown 3000 USD, i.e. 30% of your capital - one should scale the risc per trade to 0,25 % in order to keep the "volatility" under 15% of your real capital. But this all needs to be somewhat "annualized", so there is indeed a public formula: standard deviation of daily returns x square rood (252) ..