PLAIN ENGLISH
What does Drawdown mean?
Drawdown measures how far capital falls from a high-water mark before recovering or making a new high, making it a useful way to describe risk beyond single-trade losses.
IN THE WILD
How people use it
Used in active trading, chart discussion and risk-management conversations.
EXAMPLE“The strategy made money overall but had a brutal 35% drawdown.”
ALSO USED AS
DD