Drawdown tracks the worst peak-to-trough fall for a strategy in a given reference period. Drawdowns are normalized to percentage of Equity in the strategy's account - which takes into account unrealized profits / losses.

Drawdown is NOT a measure of risk, but contributes information that helps approximate how much risk was deployed in a timeframe of reference - a gradual drawdown of 50% over a year is very different to a sudden 50% weekly loss!

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