RangeSight Help
Drawdown
What drawdown means, and how to think about a cushion on a $50k prop account.
Open a guide below. Pages that already rank on their own URL stay there. This collection only files the question and links the canonical page. RangeSight does not recommend trades, brokers, prop firms, or a position size.
Each card is a question you can answer without an account when the page is free, or after you buy when the page is about the web app. Use the playground or the risk of ruin calculator for a short check. Use a prop firm page only after you confirm the current rule with the firm. Nothing here is a price forecast, and nothing here publishes a calculation method.
What is drawdown in trading?
Drawdown is the peak-to-trough decline in a trading account, from a high to the low before a new high. It is usually a percentage of that peak.
What is a drawdown cushion, and how do I think about one on a $50k prop account?
A cushion is the number of full losing trades, at your size, that would take the account to its max-loss limit. Count it in losers, not only in dollars.