Forex Drawdown Calculator
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<div><!DOCTYPE html>
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<style>
table {
border-collapse: collapse;
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table, th, td {
border: 1px solid black;
padding: 5px;
}
button {
padding: 10px 20px;
color: white;
font-weight: bold;
border: none;
cursor: pointer;
margin-right: 10px;
border-radius: 5px;
font-size: 17px;
}
#calculateBtn {
background-color: rgb(1, 117, 178);
}
#resetBtn {
background-color: rgb(206, 37, 44);
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#resultTable td {
text-align: center;
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#summaryContainer {
display: flex;
align-items: center;
margin-top: 10px;
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#summaryContainer p {
margin-bottom: 0;
font-size: 16px;
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#endingBalanceContainer,
#totalLossPercentageContainer {
font-size: 20px;
font-weight: bold;
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<table>
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<td>Starting Balance:</td>
<td><input type="number"></td>
</tr>
<tr>
<td>Consecutive Losses (Periods):</td>
<td><input type="number"></td>
</tr>
<tr>
<td>Loss per Trade (%):</td>
<td><input type="number"></td>
</tr>
</table>
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<button>Reset</button>
<button>Calculate</button>
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<p>Ending Balance:</p>
<p></p>
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<p>Total Loss (%):</p>
<p></p>
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<table>
<tr>
<th>Periods</th>
<th>Starting Balance</th>
<th>Ending Balance</th>
<th>Total Loss</th>
<th>Total Loss (%)</th>
</tr>
</table>
</div>
<script>
function resetFields() {
document.getElementById('startingBalance').value = '';
document.getElementById('periods').value = '';
document.getElementById('lossPerTrade').value = '';
document.getElementById('resultTable').innerHTML = `
<tr>
<th>Periods</th>
<th>Starting Balance</th>
<th>Ending Balance</th>
<th>Total Loss</th>
<th>Total Loss (%)</th>
</tr>
`;
document.getElementById('endingBalanceContainer').textContent = '';
document.getElementById('totalLossPercentageContainer').textContent = '';
}
function calculate() {
const startingBalance = parseFloat(document.getElementById('startingBalance').value);
const periods = parseInt(document.getElementById('periods').value);
const lossPerTrade = parseFloat(document.getElementById('lossPerTrade').value);
let balance = startingBalance;
let totalLoss = 0;
let totalLossPercentage = 0;
const resultTable = document.getElementById('resultTable');
// Clear existing table rows
while (resultTable.rows.length > 1) {
resultTable.deleteRow(1);
}
for (let i = 1; i <= periods; i++) {
const loss = (balance * lossPerTrade) / 100;
const endingBalance = balance – loss;
totalLoss += loss;
totalLossPercentage = (totalLoss / startingBalance) * 100;
const resultRow = resultTable.insertRow(i);
const periodsCell = resultRow.insertCell(0);
const startingBalanceCell = resultRow.insertCell(1);
const endingBalanceCell = resultRow.insertCell(2);
const lossCell = resultRow.insertCell(3);
const lossPercentageCell = resultRow.insertCell(4);
periodsCell.textContent = i;
startingBalanceCell.textContent = balance.toFixed(2);
endingBalanceCell.textContent = endingBalance.toFixed(2);
lossCell.textContent = loss.toFixed(2);
lossPercentageCell.textContent = totalLossPercentage.toFixed(2) + '%';
balance = endingBalance;
}
document.getElementById('endingBalanceContainer').textContent = balance.toFixed(2);
document.getElementById('totalLossPercentageContainer').textContent = totalLossPercentage.toFixed(2) + '%';
}
</script>
</body>
</html>
</div>
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<div><p><strong>Forex Drawdown calculator</strong> is a <a href="https://www.getknowtrading.com/forex-calculator/">Forex calculator</a> that gives you ending balance and total loss on your trading account after a number of consecutive losses.</p>
<p>The drawdown calculator requires three variables to be entered and you get a table with the results.</p>
<p>You can use this calculator in trading to see what you could experience if you have a number of bad trades in a row. This information is useful for a trader to see how much capital you will have after a losing streak happens.</p>
<p>This article will show you how to use a drawdown calculator and how to manually calculate drawdown on your trading account.</p></div>
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<div><iframe title="Forex Drawdown Calculator – What Would be Ending Balance and Total Loss" width="1080" height="608" src="https://www.youtube.com/embed/dPia4oxVHL0?feature=oembed" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe></div>
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<div><h2>What is Drawdown in Forex</h2>
<p>Drawdown in Forex is the amount reduced in the account balance caused by the consecutive losses. And drawdown is calculated like an account balance difference from account balance peak to account balance low caused by that consecutive losses.</p>
<p>For example if you have $10 000 at the start and you have 2 bad trades in a row. Each trade has 2% risk which means you will lose 2 x 1% = 2% (roughly calculated).</p>
<p><strong>$10 000 – $200 = $9 800</strong></p>
<p>So the account balance peak was $10 000 and you have ended at $9 800 which is account low.</p>
<p>The drawdown on this account is $200 from $10 000 to $9 000.</p>
<p>But this is a quick overview of how drawdown works, but there is a formula you can use to get the calculation correct.</p>
<p><strong>Read more: <a href="https://www.getknowtrading.com/risk-reward-ratio-calculator/">Risk:Reward Ratio Calculator</a></strong></p></div>
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<div><h2>What is the Formula for Drawdown</h2>
<p>Formula for drawdown is equal to:</p>
<p><img decoding="async" class="description-image aligncenter" src="https://static.mfbcdn.net/images/drawdown.png" alt="Drawdown formula" /></p>
<p>P = Peak Balance</p>
<p>L = Lowest Balance (valley)</p>
<h3>How Do You Calculate Drawdown in Forex?</h3>
<p>In the case from above where the account started from $10 000 and ended on $9 800 here is drawdown calculated.</p>
<h4>First Trade</h4>
<p>When you open your first trade you have $10 000.</p>
<p><strong>Drawdown = (10 000 – 9 900) / 10 000 = 100 / 10 000 = 0.01</strong></p>
<p><strong>Drawdown in % = 0.01 x 100 = 1%</strong></p>
<h4>Second Trade</h4>
<p>Now, on the <strong>second </strong>trade you <a href="https://www.getknowtrading.com/open-forex-trading-account/">start with another account</a> balance and that is $10 000 – $100 = <strong>$9 900. </strong>Now you have another bad trade with 1% risk<strong>.</strong></p>
<p>1% risk on $9 900 = $99.</p>
<p><strong>Drawdown = (9 900 – 9 801) / 9 900 = 99 / 9 900 = 0.01</strong></p>
<p><strong>Drawdown in % = 0.01 x 100 = 1%</strong></p>
<p>Now you have ended up with <strong>$9 801</strong> after <strong>2 bad trades</strong> which is difference of <strong>1.99</strong>%:</p>
<p><strong>($9 801 – $10 000) / $ 10 000 = 0.0199 </strong></p>
<p><strong>in % = 0.0199 x 100 = 1.99%</strong></p></div>
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<div><h2>What is a Drawdown Calculator?</h2>
<p>Drawdown calculator in Forex is a tool that calculates account balance drop from peak to valley caused by the consecutive losses.</p>
<p>You can enter starting balance, number of traders and the risk per each trade and as a result you get ending balance with percentage drop.</p>
<p>You also get a table with the results so you can see how the results change on each trade you lose.</p></div>
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<div><h3>How to Use the Drawdown Calculator</h3>
<p>If you put the numbers in the drawdown calculator from the example I have shown you where drawdown is 1.99% you would get this.</p></div>
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<span><img decoding="async" fetchpriority="high" width="646" height="476" src="https://www.getknowtrading.com/wp-content/uploads/2023/06/Drawdown-Calculator-example.jpg" alt="Drawdown Calculator example" title="Drawdown Calculator example" srcset="https://www.getknowtrading.com/wp-content/uploads/2023/06/Drawdown-Calculator-example.jpg 646w, https://www.getknowtrading.com/wp-content/uploads/2023/06/Drawdown-Calculator-example-480×354.jpg 480w" sizes="(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 646px, 100vw" class="wp-image-52432" /></span>
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<div><p>You can see in the table below where the drawdown calculator gives you each step in calculation.</p>
<p>You can see that the calculator quickly calculates all the trades for you where you define starting balance, number of trades and the risk per each trade.</p>
<p>You get an ending balance and total loss in percentage after drawdown is calculated.</p></div>
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<div><h2>Conclusion</h2>
<p>Drawdown calculator in Forex is a useful tool that shows you what you would end up with after consecutive losses on your trading account.</p>
<p>The drawdown calculator requires you to have constant risk per each trade. If you would like to change the risk per trade you would need to manually calculate each of the steps.</p>
<p><strong>Read more: <a href="https://www.getknowtrading.com/forex-trading-for-beginners/">Forex Trading for Beginners</a></strong></p></div>
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<p>The post <a rel="nofollow" href="https://www.getknowtrading.com/forex-drawdown-calculator/">Forex Drawdown Calculator</a> appeared first on <a rel="nofollow" href="https://www.getknowtrading.com">Get Know Trading</a>.</p>
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