# Drawdown Calculator

With MiladFX Live Price Charts, you can follow the price behaviour of this pair in real time.

Use MiladFX Forex Drawdown Calculator to see how a succession of losing transactions may reduce the equity of your trading account.

## What is a Forex Drawdown Calculator, and how does it work?

A Forex drawdown calculator is one of the most significant risk calculators in a trader’s toolset, if not the most crucial. A trader can use MiladFX calculator to enter the variables and accurately calculate the optimal percentage of equity to risk per trade.

This calculator can assist any trader in avoiding an uncomfortably high percentage of drawdown, which could result in the account equity being lost entirely.

Before initiating a trading position, I’m recommend that traders use and integrate this drawdown calculator with any sensible Money Management System or Account Equity Risk Management Plan.

## How can I use Forex Drawdown Calculator for trading?

Starting point: This is the initial account equity of a trader. Let’s use 1,000 units of the account’s basic currency as an example.

Consecutive losses: A trader can replicate a losing streak of x consecutive losing deals in this field. Let’s say you’ve had a string of six losing trades in a row.

Percentage loss per trade: The calculator’s most important field! Professional traders don’t risk more than 2% of their account equity per trade as a rule of thumb. This tried-and-true system allows traders to extend their trading careers and recover from prior losses. So, let’s go with 2% per trade.

**I’m now press the “Calculate” button.**

The following are the results: “The Ending Balance” and the “Total Loss” percentage after losing 6 straight trades.

After 6 consecutive losing trades, an initial equity of 1,000 units of any account currency has been reduced to 885.84 units.

Even with only 6 straight loss trades (which is relatively typical in Forex trading) and a conservative, and suggested 2 percent account equity each trade, the account balance has only dropped by 11.4 percent.

A thorough description of how each losing trade affects the account balance, how much each losing trade is in total percentage, and the ending account balance can be found in the results above.