Max drawdown:
the deepest dip.
The biggest fall of your running P&L from a high to a later low. It’s the worst stretch you sat through, and the one a prop firm’s rules care about.
Max drawdown = the biggest fall of your running P&L from a high to a later low
Add up your trades one by one and you get your equity curve. Every time it falls below its last high, that’s a drawdown; the deepest one is your max drawdown. It says how much pain the strategy put you through on the way.
Trades of +$400, −$150, −$300, +$200 and −$250: your running P&L peaks at $400, then falls to −$100. The max drawdown is $500.
Runs in your browser: nothing you type is sent anywhere. Arithmetic, not advice.
Your drawdown, watched for you.
Your equity curve and max drawdown sit on the dashboard, and a prop account’s card shows how far you are from its drawdown line.
- Max drawdown on every account
- Distance to a prop firm’s line
- Worked with your own trades
Quick answers.
Is max drawdown measured from my starting balance?+
What is the difference between drawdown and a trailing drawdown?+
How do I get back from a drawdown?+
Does a smaller drawdown matter if I end up in profit?+
Your Rookie card is waiting.
Free to start. Journal your first trade today and watch the numbers fill in.