Glossary

Drawdown

Also written or said as: drawdowns, max drawdown, dd

How far your trading money has fallen from its highest point.

If your trading wallet peaked at 10 SOL and now holds 7 SOL, you are in a 30% drawdown. Deep drawdowns are hard to climb out of: after losing 50%, you have to double what is left just to get back. Watching your drawdown is how you notice a strategy has stopped working.

Learn it properly inPosition size: the choice that keeps you in the gameThe trading playbook · 4 min read

Related words

Bankroll
Daily loss limit
PnL (profit and loss)

This guide is for learning. It is not financial advice. Most memecoins go to zero and most people who trade them lose money. Only ever trade what you can afford to lose.