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Risk Tool

Drawdown Calculator

Calculate how consecutive losing trades impact your account balance.

Drawdown Scenario

USD
%

This shows why proper risk management (1-2% per trade) is crucial. Higher risk = faster account blowup.

Remaining Balance $9,039.21 9.61% drawdown
Total Loss $960.79
Recovery Needed 10.63%
Trades to Recover (at 2%) 6 trades

Why Drawdown Matters

  1. Non-linear recovery – A 50% loss requires 100% gain to recover!
  2. Psychology – Deep drawdowns cause emotional trading and bigger losses.
  3. Risk 1-2% max – This limits drawdowns and keeps you in the game.
  4. Losing streaks happen – Even with 60% win rate, 5+ losses in a row will occur.