How to Use the Drawdown Calculator

1. Enter your starting balance — Your account equity before the losing streak
2. Enter your current balance — Your account equity after the losses
3. Click Calculate — See your drawdown percentage and required recovery

Why Drawdown Matters

Drawdown measures the decline from your account’s peak to its trough. It’s the most important risk metric for any trader:

• 10% drawdown → Need 11% gain to recover (easy)
• 20% drawdown → Need 25% gain to recover
• 50% drawdown → Need 100% gain to recover (extremely difficult)
• 90% drawdown → Need 900% gain to recover (nearly impossible)

The Asymmetry of Losses

The biggest trap in trading: losses and gains are not symmetrical. A 50% loss requires a 100% gain just to break even. This is why risk management is crucial.

Risk Management Rules

• Set a maximum drawdown limit (e.g., 20%) and stop trading if you hit it
• Use position sizing to limit risk per trade to 1-2%
• Take a break after 3 consecutive losses

Start Trading with UZFX

Protect your capital with proper risk management. Open a UZFX account and access professional risk management tools with just $10 minimum deposit.