What Is Drawdown?
Drawdown is the decline in your capital from a peak to a subsequent low. If your account goes from ₹10,00,000 to ₹8,00,000, that's a 20% drawdown.
The Asymmetry That Traps Beginners
This is the single most important, most underestimated fact in trading:
| Loss | Gain Needed to Break Even |
|---|---|
| -10% | +11.1% |
| -20% | +25% |
| -30% | +42.9% |
| -50% | +100% |
| -75% | +300% |