Drawdown
What it means
Drawdown is the peak-to-trough decline in equity during a losing stretch. A 30% drawdown requires roughly a 43% gain just to recover.
Why it matters
Your drawdown tolerance should guide position sizing and leverage decisions.
Drawdown is the peak-to-trough decline in equity during a losing stretch. A 30% drawdown requires roughly a 43% gain just to recover.
Your drawdown tolerance should guide position sizing and leverage decisions.