Forex Drawdown Calculator

Starting balance: This will be a trader’s initial account equity. Let’s say for example 1,000 units of any base currency.

Consecutive loses: In this field traders can simulate a strike of x consecutive losing trades. Let’s use, for our example, a series of 6 consecutive losing trades.

Loss % per trade: The crucial field of the drawdown calculator! As a rule of thumb, professional traders do not risk more than 2% of the account equity per trade. This proven methodology allows traders to last longer on their trading careers and, eventually, to recoup from previously losing trades. So, let’s use 2% per trade for our example.

Now, we hit the “Calculate” button.

The results: “The Ending Balance” after losing 6 consecutive trades and the “Total Loss” percentage.

In this case, an initial equity of 1,000 units of our account currency, after 6 consecutive losing trades, is now 885.84 units.

This means, even with only 6 consecutive losing trades (quite common in forex trading) and using a conservative, and recommended 2% risk per trade, the account balance has just lost 11.4%.

On the results above there’s a detailed breakdown of how each losing trade affected the account balance, how much each losing trade is in total percentage and the ending account balance.