BRVX Glossary · Drawdown · Updated September 25, 2026
A drawdown is the decline in the value of an account, position or strategy from a peak to a subsequent low, usually shown as a percentage. The maximum drawdown is the largest such fall over a period and is a core measure of risk.
The formula
Drawdown (Peak − Trough) ÷ Peak Gain to recover D ÷ (1 − D)
A 50% drawdown needs a 100% gain to get back to the peak.
How it works
- Peak Highest value
- Trough Lowest after it
- Drawdown Fall as %
On this page
Why recovery is harder than the fall
- −10% needs +11% to recover.
- −25% needs +33%.
- −50% needs +100%.
- −90% needs +900%.
Drawdown and leverage
Leverage multiplies drawdowns. A 5% move against a 10x position is a 50% drawdown on its margin, and a 10% move can end the position. Many traders cap risk per trade at 1–2% of the account to keep the maximum drawdown survivable.
On BRVX
On BRVX, PnL is counted on the full position size, not on the margin, and leverage is capped per market up to 150x on BTC/USDT. A stop-loss on a BRVX position sets the maximum drawdown you accept on that trade.
Questions about Drawdown
What is a good maximum drawdown?
It depends on the strategy; many professional funds try to keep it under 20%.
Is drawdown the same as loss?
A drawdown can be unrealised and recover; a loss is realised when the position closes.
How is max drawdown used?
To compare the risk of strategies with similar returns.
Drawdown: next steps on BRVX
Drawdown on ASTER/USDT: 0.1% a round trip in fees, 0.0046% per hour funding on a long, about 1.1 USDT a day per 1,000 USDT.
Read next: PnL (profit and loss), Stop-loss and Leverage.
Open ASTER/USDT in the app
Open appLeverage raises both gains and losses. Start with a size you are comfortable with. Not available to US persons.