Account balance ($)
Drawdown (%)
Result
About drawdown
What is drawdown?
Maximum peak-to-trough decline in account balance. A 20% drawdown means the account fell from its highest point by 20%.
Recovery math
Losses require disproportionately larger gains to recover. A 50% loss needs a 100% gain to break even.
Prop firm limits
Most prop trading firms set maximum drawdown limits at 5–10%. Exceeding this results in account termination.