Drawdown measures how far an account falls from a previous peak. It is one of the clearest ways to understand the risk behind managed forex performance.

IMAGE PLACEHOLDERManaged Forex Drawdown
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Maximum Drawdown

Maximum drawdown shows the largest peak-to-trough decline over a measured period.

Balance Drawdown vs Equity Drawdown

Balance-only statistics can miss floating losses. Equity drawdown can provide a more complete picture when trades remain open.

Compare Risk With Return

A strategy producing 20% with 5% drawdown has a different profile from one producing the same return with 30% drawdown.