“Return tells you how it ended. Drawdown tells you what you will live through on the way.”
-- Ahmed Tahsin, Founder & CEO
The Direct Definition
Maximum Drawdown is the largest peak-to-trough fall an account experiences before recovering. It measures the worst stretch you could have lived through if you had invested at the worst possible moment.
“Most investors are not beaten by the market -- they are beaten by their nerves during drawdowns.”
A Numbers Example
The peak
An account climbs to $100,000
The trough
It falls to $80,000 before recovering -- a 20% drawdown
The real question
If you had entered exactly at the peak: would you have held on, or quit at the bottom?
Why It Matters to You
Brutal math
A 50% drawdown needs a 100% gain just to break even
Before return
Decide what fall you can tolerate, then filter strategies by it
The nerve test
Drawdown decides whether you stay in the plan or abandon it
A verified number
In independently verified records, drawdown cannot be hidden
The TIC Angle
TIC enforces strict drawdown limits in risk management, and our strategies' drawdown figures are verified on Myfxbook for anyone to inspect.
Risk notice: trading carries high risk and you may lose your capital. Past performance does not guarantee future results. Educational content only -- not investment advice.
