Drawdown rules: what triggers you to step back to demo?
A predetermined drawdown level that sends you back to demo — or to smaller size — turns a spiral into a pit stop. Without one, the account decides for you, usually at zero.
What's your trigger?
- the drawdown percentage or R level
- what stepping back looks like for you
- whether you've honoured the rule when it fired
The drawdown guide shows how much harder recovery gets the deeper you go.
Background: Drawdown and recovery: why a 50% loss needs a 100% gain
Losses and gains aren't symmetrical. See how much you need to recover from a drawdown, what losing streaks do at different risk levels and how to set limits.
How much do you need to gain to recover from a 50% loss?
100%. The gain needed is the loss divided by one minus the loss, so larger drawdowns need disproportionately larger gains.
What is maximum drawdown?
The largest fall in account value from a peak to a later low, before a new peak is reached, usually expressed as a percentage.
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