Forex Drawdown Calculator
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Use our Forex drawdown calculator to accurately calculate how your trading account equity can be affected after a series of losing trades.
What is a Forex Drawdown Calculator
A Forex drawdown calculator is considered, if not the most, surely one of the most important risk calculators in a trader's toolbox. With our calculator, a trader can input the settings in order to accuretly calculate what should be the ideal percentage of equity to risk per trade.
The use of this calculator can help any trader on avoiding reaching an unconfortable percentage of drawdown that could, eventually, put the account equity at the risk of complete loss.
We recommend traders to always use, and to integrate, this drawdown calculator with any sound Money Management System or any Account Equity Risk Management Plan, before opening a trading position.
How to Use the Forex Drawdown Calculator
Starting balance: This will be a trader's initial account equity. Let's say for example 1,000 units of the account base currency.
Consecutive loses: In this field a trader can simulate a losing strike of x consecutive losing trades. Let's use, for example, a series of 6 consecutive losing trades.
Loss % per trade: The crucial field of the calculator! As 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 to recoup from previously losing trades. So, let's use 2% per trade.
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 any 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% account equity per trade, the account balance has just lost 11.4%.
On the results above there's a detailed breakdown of how each losing trade affects the account balance, how much each losing trade is in total percentage and the ending account balance.
Use this Drawdown Calculator on Your Website
Our tools and calculators are developed and built to help the trading community to better understand the particulars that can affect their account balance and to help them on their overall trading.
Regardless if investors trade the Forex market, cryptocurrencies or any other financial instruments, our complete suite of accurate Forex tools and calculators are programmed to work with any data inputted.
By using live market data, our set of calculators allows traders to always get the most accurate results possible, and they work with most FX pairs, metals and even cryptocurrencies. Also, these great calculators are translated into 23 different languages including Arabic, Russian, Japanese and Chinese.
With an intuitive design and a user-friendly interface, these calculators can be easily integrated with any web page. The substantial advantage is that they are completely unbranded, and can be fully customizable to any color scheme and to fit the layout of any web page.
If you're a webmaster and consider that these calculators can create added value for your website on a "Tools/Calculators" section, you are free to embed them on your website.
The embedding widget can be used as it is or it can be fully configured to match your website’s colours. When you are happy with the settings, simply copy/paste the final code to embed the tool/calculator widget on your page.