Forex What Is Drawdown. When you lose money on trades, you have what is known as a. Drawdown is a key measurement in your trading because if you let it get out of hand you can quickly put a large hole in your account.
It is very common to speak of the maximum or historical Drawdown that is the worst streak of. A drawdown is generally priced estimate as the percentage between the top and the succeeding trough. All good trading begins and ends with proper risk management.
If you lose, you need to lose small.
Drawdown in forex refers to the percentage of the amount of losing trades in a row.
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By measuring forex drawdown, retail traders can better evaluate if that trading system fits their risk tolerance and investment goals. In forex specifically, drawdown refers to a reduction of equity in your portfolio. A drawdown is generally priced estimate as the percent
age between the top and the succeeding trough.