Drawdown Calculator
Calculate your maximum drawdown and understand what it takes to recover. Monitor your risk exposure and protect your trading capital.
Account Balances
The highest balance your account reached
Your current account balance
Results
Drawdown Analysis
Recovery Required
MODERATE RISK LEVEL
Your drawdown is moderate. Consider tightening risk management to prevent further losses.
Key Metrics
Understanding Drawdown
What is Drawdown? Drawdown is the peak-to-trough decline in your account balance. It measures the largest drop from a historical high to a subsequent low.
Why It Matters: Understanding drawdown helps you assess risk exposure and the difficulty of recovery. A 50% loss requires a 100% gain to break even.
Recovery Challenge: The larger the drawdown percentage, the more difficult it becomes to recover. Professional traders typically limit drawdowns to 20% or less.
Risk Management: Use proper position sizing, stop losses, and risk-reward ratios to prevent excessive drawdowns. Prevention is easier than recovery.