Drawdown
Understand and manage losing streaks in your bankroll
📊 Educational guide • Risk management
📉 What is Drawdown?
Drawdown is the percentage reduction of your bankroll from its peak value. It's the most important metric to evaluate the real risk of your betting strategy.
Drawdown = (Peak Bankroll - Current Bankroll) / Peak Bankroll × 100%
Example: Peak bankroll: $1,200 | Current bankroll: $900 | Drawdown = 25%
Important: Drawdown is not the same as total loss. It's the decline from the highest point ever reached.
🧮 Drawdown Calculator
Calculate your bankroll drawdown:
📉 Current drawdown:
0%
💰 Loss from peak:
$ 0.00
📊 Bankroll needed to recover:
$ 0.00
📊 Drawdown by Stake Size
See the impact of stake size on your bankroll drawdown:
Stake 1%
Expected drawdown: 10-15%
✅ Low Risk
Stake 2%
Expected drawdown: 20-30%
⚠️ Moderate Risk
Stake 3%
Expected drawdown: 30-45%
🔴 High Risk
Stake 4%
Expected drawdown: 40-60%
🔴 Very High Risk
Stake 5%
Expected drawdown: 50-75%
💀 Extreme Risk
🎮 Drawdown Simulator
Simulate the impact of consecutive losses on your bankroll:
💰 Bankroll after losses
$ 0.00
📉 Drawdown (%)
0%
📈 Recovery needed (%)
0%
💰 Amount to recover
$ 0.00
📈 Drawdown Recovery
How much you need to gain to recover from drawdown:
Drawdown 10%
Need to gain +11.1%
Lost $100 → Need $111
Drawdown 20%
Need to gain +25%
Lost $200 → Need $250
Drawdown 30%
Need to gain +42.9%
Lost $300 → Need $429
Drawdown 40%
Need to gain +66.7%
Lost $400 → Need $667
Drawdown 50%
Need to gain +100%
Lost $500 → Need $1,000
Drawdown 60%
Need to gain +150%
Lost $600 → Need $1,500
Drawdown 70%+
Extremely difficult recovery
⚠️ High risk of ruin
Warning: The larger the drawdown, the harder the recovery. A 50% drawdown requires 100% profit to return to the starting point.
📊 Types of Drawdown
📉 Maximum Drawdown: Largest decline ever recorded from the historical peak
📊 Current Drawdown: Current decline from the last peak
📈 Average Drawdown: Average of declines over a period
✅ Recovered Drawdown: Drawdown that has been fully recovered
🛡️ How to Minimize Drawdown
1
Reduce stake size - Smaller stakes = smaller drawdown
2
Use daily stop-loss - Limit daily losses (e.g., 10% of bankroll)
3
Diversify bets - Don't concentrate on few events
4
Temporarily reduce stakes - After significant drawdown
5
Maintain discipline - Don't increase stakes to recover
👤 Drawdown by Bettor Profile
🟢 Conservative
Stake: 1-2% | Drawdown: 10-20% | Recovery: 1-2 months
🟡 Moderate
Stake: 2-3% | Drawdown: 20-35% | Recovery: 2-4 months
🔴 Aggressive
Stake: 4-5% | Drawdown: 40-60% | Recovery: 4-8 months
⭐ Why is Drawdown Important?
Measures Real Risk - Shows the worst scenario your bankroll has faced
Psychological Preparation - Helps understand that losses are part of the process
Evaluates Strategy - Strategies with high drawdown are riskier
Sets Limits - Helps define realistic stop-loss levels
🏆 Conclusion
Drawdown is one of the most important metrics to evaluate your risk management:
- ✅ Drawdowns are normal and inevitable
- ✅ Smaller stakes = smaller drawdowns
- ✅ The larger the drawdown, the harder the recovery
- ✅ Define a maximum acceptable drawdown (e.g., 30%)
For Educational Purposes Only: Drawdown is inevitable. The key is managing it with low stakes and discipline.