What is the balance drawdown?
The balance drawdown refers to a drop in balance in a trader's account. A drawdown is commonly defined as the decline from a high peak to a pullback low of the balance in a trader's account.
How to calculate the drawdown at every balance's trough:
In which:
- BDD: The balance drawdown (%)
- Max B: The maximum amount of the balance ($)
- Bo: The amount of the balance at a trough low