Professional traders answer one key question before entering any trade: if several losses happen in a row, how much will the account’s equity drop? The Drawdown Calculator answers this question exactly.
Results:
End Balance
Total Loss
Drawdown shows how much your account can drop in the worst-case scenario; knowing this number is vital to surviving in the market.
Drawdown is the decline in equity during a specific trading period.
Equity is your account’s real-time value, including the profit and loss of open trades. You may think this can be measured easily by calculating the loss per trade—this is completely correct, but professional traders always consider the worst-case scenario.
Example: Imagine you have a strategy with an 80% win rate, but 20% of the time trades close with a loss. In other words, if you place 100 trades per month, 20 trades will be losing trades. In the worst scenario, you will experience those 20 losing trades consecutively; if you test this strategy with $1,000 and 2% risk per trade, your capital will drop by $400.
Professional traders evaluate their trading strategy by asking these questions:
YES
by entering the initial balance, risk percentage per trade, and the number of losing trades, you can calculate drawdown in less than 1 second with the Aron Groups Drawdown Calculator.
Enter the initial account balance.
Set the risk percentage per trade.
Enter the number of consecutive losing trades.
With one click, see the percentage drawdown of your account balance after consecutive losses.
This tool helps you get a clear, realistic view of your strategy’s risk before the account incurs a heavy loss.
You can test different scenarios by changing the inputs:
This tool is very useful for strategy backtesting, risk control, and money management.
While drawdown is derived from the difference in equity during a trading period, absolute drawdown shows you the difference in balance. In other words, absolute drawdown does not reflect the actual risk to the account and is merely the result of consecutive realized losses.
We call the difference between the highest and lowest equity within a trading period “drawdown”; when expressed as a percentage, it is called the relative drawdown.
Example: if equity drops from $1,000 to $600, the relative drawdown is 40%.
You can test different scenarios by changing the inputs:
If you want to build a profitable and powerful strategy, you must first know how it performs in the worst possible conditions.
With forex calculators, money management is more accurate, emotional decisions are reduced, and the entry and exit processes are fully calculated.
For example, by using the Lot Size Calculator, you can:
If your goal is to build a stable trading system, choosing the right position size with well-calculated risk is essential.
Now that you have calculated the pip value of price movement,
you can enter real-market trades with more confidence and an appropriate volume.
Drawdown is the maximum decline in a trading account’s equity over a specific period; it is calculated as the difference between the highest and lowest equity levels.
Based on the following formula:
Initial balance × (1 − risk percentage per trade) ^ number of losing trades
It shows your account balance and the amount of drawdown after several losing trades.
Yes, this tool shows your potential loss (before it happens).
Yes, the tool’s error is close to zero; you only need to enter the variables accurately.
