FOREX DRAWDOWN CALCULATOR
Drawdowns are an inevitable part of trading, but you need to understand and manage them for long-term success in the forex market. The Forex Drawdown Calculator by City Traders Imperium is a powerful tool that can help you analyze your trading system's drawdown potential and refine your risk management strategy.
Starting Balance: | Consecutive Losses |
Loss per Trade (%): | |
Ending Balance:
Total Loss (%):
Starting Balance | Total Loss (%) | Ending Balance |
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How to Use the Forex Drawdown Calculator
Using the Forex Drawdown Calculator is a straightforward process that requires three essential inputs. To get started, simply enter the following information:
- Starting Balance:
- Enter your initial trading account balance. This represents the total amount of account equity you have available for trading when you begin your drawdown analysis.
- For example, if you’re starting with $5,000 in your trading account, you would enter “5,000” in this field.
- Consecutive Losses:
- Specify the number of consecutive losing trades you want to simulate. This input allows you to analyze how a series of losses in a row would affect your account balance.
- For instance, if you want to see the impact of 5 consecutive losing trades, you would enter “5” in this field.
- Loss per Trade (%):
- Input the percentage of your account balance that you’re willing to risk on each trade.
- As a general rule, professional traders recommend risking no more than 1-2% of your account balance on any single trade.
Once you’ve entered these three inputs, simply click the “Calculate” button to generate your drawdown analysis. The Forex Drawdown Calculator will instantly display the following results:
- Ending Balance: This is the remaining account balance after experiencing the specified number of consecutive losses at the given loss percentage per trade.
- Total Loss: This represents the total amount of money lost during the simulated drawdown scenario.
By crunching the numbers on potential drawdown scenarios, you can gain valuable insights into how your account might weather a storm of consecutive losses.
Explore Further
In addition to the Forex Drawdown Calculator, we have a wealth of valuable resources available to you, including more Forex calculators, educational materials, and expert insights.
We invite you to explore our website further to discover the full extent of our offerings.