Drawdown

Drawdown – A performance metric often reported in optimization results. In backtests, equity drawdown is the maximum percentage drop in equity from a peak, and balance drawdown is the drop in account balance. cTrader shows Max Equity Drawdown and Max Balance Drawdown in its statistics table. These help judge risk: for example, MT5 also reports drawdown and uses it in criteria. Lower drawdown is usually better, and criteria can be set to minimize it during optimization.

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