How to Calculate Forex Drawdown?

When reading the price action charts, be sure to use precise pixels. Get the most recent peak value first (PV). Next, after such a peak, get the lowest price value (LP).
Divide LP by PV once you have both. 1 is subtracted, and the result is multiplied by 100%.
This is how you can calculate the forex drawdown percentage.
 
If you notice your drawdown is too close to the marginal limit, it is high time to apply risk management and money management, in order to save your account from blowing up. Execute only one to two trades in a day, and strictly adhere to the 2% trading rule. These 2 will significantly help you prevent high losses till the time you accumulate and preserve some capital in your account.
 
Back
Top Bottom