What is Drawdown in Forex?

Drawdowns in Forex are the difference between the initial balance and the current account equity. When the Equity balance is lower than your initial balance, that means you are experiencing Drawdown. For example, you start trading with a net balance of 100,000 US Dollars, then you see the current Equity balance being 95,000 Dollars. This means, the amount of Drawdown in your Forex is 5,000 US Dollars.
Many traders do not realize that they are experiencing a fairly high drawdown, because they feel they have not experienced successive losses. Though the higher the Forex Drawdown, the greater the percentage of profit that must be collected to cover the loss. Quite often irrational ways are carried out by traders who experience large drawdowns. One of them is taking risks by increasing the lot size. They forget the principle of Money Management and tend to trade for revenge. This is where you need to understand the importance of keeping drawdowns low when trading.

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drawdown illustrates our trading performance, whether developing or even experiencing a setback.

drawdown can we see the performance or development of our trading.

we can see the drawdown in the mt4 feature, we can use the drawdown to measure how good our trading performance is and whether it has increased over time or has decreased its performance.

and then how to see our drawdawn when we are trading sir,,i dont see anything at mt4 just history and others tools

If we look at the drawdown, we can find out some information including what percentage of our loss and profit and the average development of our trading performance so this drawdown is quite important.

Drawdowns can be used for evaluation material and also to see the development of our trading performance from period to period so that we can make decisions on which parts we should improve and which parts we must maintain.

Drawdown is often the choice of tools for evaluating, by using drawdown in evaluation we will know a lot of information about the development of our trading performance so that we know what we have to change and what we have to maintain, especially related to strategy.