Intermediate
Max Drawdown
The largest peak-to-trough drop your account has ever had.
Definition
Max drawdown is the single worst decline from a high to a low across your whole history. It answers the question "how bad has it gotten?" and helps you judge whether you could emotionally and financially withstand a similar stretch in the future.
Example
Across the year, your deepest fall from a peak was 18%. That 18% is your max drawdown, even if today you are at a new high.
Related terms
Where you see this in the app
Educational content only. Map.Trade does not provide financial advice or trading signals.