Forex Drawdown Calculator

How is drawdown calculated?

Drawdown measures the single continuous loss from the peak to the trough. Simply put, a drawdown refers to the decline from a peak to a trough until a new peak is reached.

The Forex Drawdown Calculator is considered one of the most important risk calculators in a trader's toolbox. One of the features of our Forex Drawdown Calculator is that it allows traders to accurately simulate the ideal net worth and risk percentage of each trade.

Using this calculator can also help traders avoid reaching uncomfortable drawdown percentages, which could ultimately put the account's net worth at risk of total loss. For example, even if each trade uses a 7% capital allocation, experiencing 10 consecutive losses could deplete the account's initial capital by more than 50%.

We recommend that traders always use this drawdown calculator before opening a trading position and integrate it with any sound capital management system or account equity risk management plan.