A drawdown is the reduction of one’s capital after a series of losing trades.

[the Black avatar]

This is normally calculated by getting the difference between a relative peak in capital minus a relative trough.

Traders normally note this down as a percentage of their trading account.
example: say you are new and you are inexperience. the amount you start with is a standard place for you. should you gain its a move upward in profit. the high price or point your account reached is a peak. say you suddenly have a losing streak. the end point or amount of that losing streak is a trough. the claim back up represented is a drawdown experience.

have you ever face such a thing. If you have please share. I know I have. and it wasn't the nicest experience to lose and lose constantly with seeing profit for a time. if you haven't blown an account you wouldn't understand.