DislikedI mean I've used the % change of EUR-CHF to work out the drawdown on the hedge. It works out about the same.
Obviously the idea of "entering/exiting one leg at if it's moving to your advantage" is not taken into account in this calculation, however it gives you a ball-park idea of how quickly the Drawdown can increase.Ignored
As mentioned thats why in my view the entry point is crucial. Meaning do not enter blindly into a trade just because of the divergence indicator. That of course also applies to the the % level 2,3,4 and so on.