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As a Co-founder of Clear Markets Ltd, I oversee operational and financial systems.
I am the Director/Owner of Excel Markets Inc. (Regulated by the US National Futures Association)
I am an NFA Associate Member with a Series 3 and 34 license.
Accomplished Broker Partnerships Manager and Customer Support Team Leader, I specialize in leveraging data-driven insights to enhance financial strategies and foster business growth, particularly within the retail sector. With a robust background as a Data Manager and Financial Analyst, my expertise lies in utilizing analytical approaches to optimize trading outcomes and investment strategies for clients.
Having previously worked with multiple CFD brokers in Cyprus, I maintain a strong commitment to staying current with industry trends. My analytical skills are pivotal in recommending tailored trading solutions that align with clients' specific needs and investor profiles.
This forex drawdown calculator helps traders accurately measure how consecutive losing trades affect account equity, capital preservation, and overall trading risk.
By adjusting the risk percentage per trade and number of consecutive losses, traders can simulate worst-case scenarios and ensure their risk management strategy is sustainable over the long term.
In forex trading, drawdown refers to the decline of account equity from a peak to a trough during a sequence of losing trades. It is one of the most important risk metrics used by traders to evaluate account survival and long-term performance.
Large drawdowns significantly increase psychological stress and make recovery more difficult, which is why professional traders focus on controlling drawdown rather than chasing profits.
Starting balance: Your trading account’s initial equity.
Consecutive losses: Simulate a streak of losing trades.
Loss % per trade: The percentage of equity risked on each trade. Most professional traders risk no more than 1–2% per trade.
Click Calculate to see your ending balance and total drawdown.
A common mistake is assuming recovery is linear. A 20% drawdown does not require a 20% profit to recover—it requires a 25% gain just to break even.
As drawdown increases, the required recovery percentage grows exponentially, which is why capital preservation is the foundation of professional forex trading.
Most professional forex traders aim to keep maximum drawdown below 15–20% to protect capital and maintain long-term consistency.
Yes. A high win rate with uncontrolled drawdown can still lead to account ruin, while a modest win rate with low drawdown can be sustainable.
Drawdown may be calculated using balance or equity. Equity drawdown includes floating losses, while balance drawdown does not.
Most professional traders recommend risking no more than 1–2% of account equity per trade to help control drawdown.
