Drawdown Calculator

To help you understand the risks associated with your trading strategy and make well-informed decisions about position sizing and risk management, a drawdown calculator identifies the maximum potential loss in your trading account from its peak value to its lowest point before a new peak is achieved.

Using FX Leaders' Drawdown Calculator helps you visualize potential losses and understand how drawdowns can affect your trading performance.

Because it offers information about a trader's risk exposure, the drawdown calculator is helpful. You can assess the effect of losses on your capital and modify your trading strategy by computing the maximum drawdown. It also supports you in maintaining discipline and reasonable expectations during losing streaks.

Drawdown is calculated by measuring the difference between the peak account value and the lowest point that follows before a new peak is reached.

For example, if your account hits a peak of $10,000, and then falls to $7,000 before recovering, your drawdown would be 30%. This reflects a sharp fall from your peak, emphasizing how crucial risk management is.