Drawdown is a key concept in trading risk management that shows how much a trading account declines from its peak to its lowest point. Every trader experiences drawdowns, but managing them is essential for long-term success. By tracking drawdown levels, traders can evaluate performance, adjust position sizes, and control risk more effectively, helping maintain discipline and avoid emotional trading decisions.
https://blog.pfhmarkets.com/trading-risk-management/drawdown-in-trading/
