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How to Track Maximum Drawdown

Overview​

Monitor your largest peak-to-trough decline in account value.

Steps​

1. View Drawdown Metric​

Go to Reports or Dashboard

Screenshot: Reports page

2. Find Max Drawdown​

Displayed as:

  • Percentage (e.g., -15%)
  • Amount (e.g., -₹15,000)
  • Date range of drawdown

Screenshot: Max drawdown display

3. View Drawdown Chart​

Visual representation:

  • Equity curve
  • Drawdown periods highlighted
  • Current drawdown
  • Historical drawdowns

Screenshot: Drawdown chart

Success!​

Tracking your risk exposure!

Understanding Drawdown​

📉 Peak: Highest account value
📉 Trough: Lowest point after peak
📉 Drawdown: % decline from peak
📉 Recovery: Return to peak

Drawdown Levels​

🟢 <10%: Excellent control
🟡 10-20%: Normal trading
🟠 20-30%: Needs attention
🔴 >30%: High risk

What to Do​

  • Review risk management
  • Reduce position sizes
  • Tighten stop losses
  • Take trading break if needed

Quick Tips​

  • Monitor weekly
  • Set drawdown limits
  • Stop at threshold
  • Improve risk management

Next Steps​

Troubleshooting​

High drawdown? Review risk rules
Can't recover? Take break, reassess
Need help? Contact support@tradelyser.com