A DRAWDOWN is a percentage of an account which could be lost in the case when there is a streak of losing trades.

It is a measure of the largest loss that a trader's account can expect to have at any given moment or period of time. Streak of losing trades or a LOSING STREAK - a period of consecutive losses with no profitable trades.

You'll see the term "drawdown" being used when describing a trading system. Before trusting any particular system, a trader wants to know what is the largest loss he can face when he starts taking losses due to changes on the market that would lead to a temporary worsening of a performance of a trading system.

What a trader cannot predict is in what sequence the profits and losses will come Will it be 8 consecutive profitable and 2 losing trades every time?

Will it be 10 consecutive losing trades and then 3 profitable, and then 5 losing and what does drawdown in forex mean 15 profitable? It is impossible to tell in advance.

However, by testing a system, a trader can look back ad find the largest period of losing trades - the largest losing streak - this is what would be called a MAXIMUM DRAWDOWN for a particular system, and this is what a trader should be prepared to. To the beginners asking for explanation: Say if you are using a trading system like martingale or hedging or any other, drawdown refers to maximum loss you can be subjected to with those strategies or any expert advisor.

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Would you recommend using the MT4.

Drawdown

Are there any real differences and benefits Hi, I would like to ask about trend lines. I read that if you draw a trend line you can then draw another line I would like to have one -on-one coaching.

Drawdown Explained - The FX View

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As a newbie to Forex I read. I am using an expert adviser in metatrader. Does m30 time frame mean after 30 minutes it stops trading S based forex trading platforms and if non then why? Forex for Beginners Answering all your questions about Forex!

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As a newbie to Forex I read a great deal about how you should go with the Trend or the Tide and not with the ripple or wave.