Calculate Potential Drawdowns
2%
$200 per trade
50%
1:2
Potential Drawdown from Consecutive Losses
| Consecutive Losses | Drawdown Amount | Drawdown % | Remaining Balance |
|---|
Recovery Requirements
| Drawdown % | Remaining Balance | Required Gain % | Est. Trades to Recover |
|---|
Drawdown Probability
Understanding Drawdown
Drawdown measures the decline from a peak to a trough in your account balance before a new peak is achieved. It's a crucial metric for evaluating risk and the emotional stress of trading.
1
A 20% drawdown requires a 25% gain to recover
2
A 50% drawdown requires a 100% gain to recover
3
A 75% drawdown requires a 300% gain to recover
Minimizing Drawdown
- •Limit risk per trade to 1-2% of your account
- •Diversify trading strategies and instruments
- •Reduce position size after consecutive losses
- •Take a break after hitting predetermined drawdown levels
- •Maintain a minimum win rate of 50% with at least 1:1 risk-reward
Expected Drawdown
Most professional traders experience these drawdown levels throughout their careers:
10-15%
Common monthly
15-25%
Periodic yearly
25-40%
Severe (every few years)
50%+
Red alert (revise strategy)
Flow Execution helps you limit drawdowns through precise risk management tools and automated position sizing based on your risk tolerance.
Try Flow Execution