Performance
Peak-to-trough decline, and the gain required to climb back out of it.
Peak-to-trough decline, and the gain required to climb back out of it. The page states the equation, the units it expects and the rounding it applies, so the result can be reproduced by hand.
A calculator gives you a number. This one feeds the next: account to risk, risk to position size, position size to the trade, and the trade to expectancy, drawdown and risk of ruin.
See the performance tools →The gain needed always exceeds the loss taken, because it is computed on the smaller balance.
A peak of $50,000 falling to $38,000, with a 15% annual return:
Two years of returns to get back to where you were — during which the capital compounds nothing.
100%. The asymmetry grows fast: 20% needs 25%, 30% needs 42.9%, and 90% needs 900%.
Larger than your worst so far. Sizing off historical maximum drawdown fits the number to the sample and understates the tail.
Current drawdown is measured from the most recent peak. Maximum is the deepest the account has ever been below a peak, and it is the figure to size against.
A calculator answers one question and raises the next. These are the ones this figure feeds into.
The probability that a losing run takes out a defined share of the account.
How a fixed monthly return compounds an account balance over time.
Turn an account balance, a risk percentage and a stop distance into a size in lots, shares or contracts.
Drawdown Calculator · rounding shown to the precision displayed