FSP Academy
Glossary

Maximum drawdown

The largest peak-to-trough equity decline over a period.

Max drawdown is the worst losing stretch you'd have lived through — the number that tells you whether you could actually have stuck with a strategy. A backtest with a great return but a 60% max drawdown is, in practice, unusable for most traders.

Learn it properly
Risk Management course →
Position sizing, stops, and surviving the drawdowns.

Put it into practice. Log a trade, see it in your stats.

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