Risk
What is drawdown?
The peak-to-trough decline in your account over a period.
Definition
The peak-to-trough decline in your account over a period.
Drawdown, explained
If your account hit $20,000 then dropped to $17,000 before recovering, your drawdown was $3,000 (or 15%). Tracking drawdown matters because it tells you the worst-case experience of using your strategy — the number that makes traders quit, not the average return.
Where drawdown shows up in a journal
A trading journal is where this stops being a definition and becomes your own number. sizeforzero computes it from the trades you import or log, alongside the rest of your analytics vocabulary, and every figure in the app carries an (i) that explains it in the same plain English you just read.