Why drawdown matters
Every trader has losing streaks. Drawdown measures how deep they go. The deeper the drawdown, the harder the recovery:
| Drawdown | Gain needed to get back to the peak |
|---|---|
| 10% | 11% |
| 25% | 33% |
| 50% | 100% |
This is why small, consistent risk per trade matters more than any single winning trade.