Trailing (Equity) Drawdown

Trailing (Equity) Drawdown – A drawdown measured from a moving high-water mark; often used to calculate trailing stops or worst-case drawdown. For example, if an EA closes trade when it realizes a max trailing drawdown of 10%, it limits losses. Not standard in reports, but some experts monitor trailing drawdowns to measure maximum historical dip from any peak.

⬅ Robots Glossary