Drawdown

The idea

The decline from an account's previous peak, measured in money or percent.

Try the scenario

A fall from 10000 to 8000 is a 20% drawdown.

Check your understanding

Which statement is supported by this definition?

• This concept guarantees the next five candles.
• A 20% loss needs only a 20% gain to recover.
• The decline from an account's previous peak, measured in money or percent.

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