Risk Management: Basics of ‘Drawdown’

Risk Management: Basics of ‘Drawdown’

When we lose money on trades, this is known as a ‘drawdown’. Traders are often under the impression that when they have lost, for example, 20% of funds, that they need to claw back 20% to reach breakeven. This is not the case. In this webinar, we will explain some simple and easily applicable formulas to manage risk. 

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