How max drawdown is calculated

Drawdown is how far your results have fallen from their highest point. TradeBB measures it in money, from your cumulative net P&L, in two ways.

Trade-by-trade max drawdown

TradeBB takes your closed trades in the order they were closed, adds up their net P&L, and tracks the highest total so far. After each trade, the drop from that high is the drawdown. Max drawdown is the largest drop from a high to a later low.

Only closed trades count. Open positions, deposits, withdrawals, dividends, credits and other balance adjustments are left out, so the figure reflects your trading alone.

Example:

Max drawdown: $250, from $300 down to $50, even though the period ended at a new high.

Daily drawdown curve

The Daily Drawdown Curve does the same with each day's closing total instead of each trade. For every trading day it shows how far that day's close sat below your highest close before it. Drops and recoveries within a single day don't show on this curve, so its deepest point can be smaller than the trade-by-trade figure.

Where to find them

Both are on the Dashboard: Trade-by-Trade Max Drawdown and Daily Drawdown Curve. They use the account and date range selected at the top. Pick one prop account to see that account on its own.

Is this my prop firm's drawdown?

Not necessarily. Prop firms calculate their limits in their own way, often from your account balance or equity, sometimes intraday, and many use a trailing limit. Use TradeBB's figures to review your results, and your firm's dashboard for its rules. See trailing drawdown, explained.