What drawdown is acceptable?

Most prop firms cap max drawdown at 8–12%. Retail traders should aim to keep peak-to-trough drawdown under 15% to stay psychologically and statistically viable.

What's the difference between max and current drawdown?

Max drawdown is the worst peak-to-trough decline ever recorded on the equity curve. Current drawdown is the distance from the most recent equity peak.

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Know the climb before you fall

Drawdown Calculator

Drawdowns are unavoidable — but the % gain needed to recover grows non-linearly. Use this tool before every funded challenge to understand exactly how much room you have left.

Drawdown Calculator

Quantify drawdown and the gain needed to recover.

Starting equity (peak)

Lowest equity (trough)

Drawdown

15.00%

Gain needed to recover

17.65%

How it works

Find your peak

Highest equity reached on the account before the decline.

Find your trough

The lowest equity touched after that peak.

Read the recovery

The % gain you need from the trough just to get back to even.

Frequently asked questions

Losses and gains aren't symmetric. A 20% drawdown needs a 25% gain to recover; a 50% drawdown needs 100%. The deeper the hole, the harder the climb.

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