Breakeven and Drawdown Calculator for traders

The Breakeven calculator is a useful tool for traders that are currently going through a drawdown.

By using it, the calculator will give you your exact current drawdown and the gains needed to breakeven.

Breakeven Point Calculator

What is the Breakeven calculator for?

You can use the breakeven calculator for forex, stocks, crypto, or any other markets.

The calculator works great to calculate your equity breakeven point.

It is also a good tool if you want to calculate individual coins or stocks drawdown.

I created the calculator to help traders understand the situation they are in.

Many new traders don’t realize how hard it can be to recoup our equity when they are in a drawdown. Getting back to breakeven can be a very hard task and sometime impossible.

Es ist wichtig, dass wir unsere aktuelle Situation als Händler kennen und anerkennen. Das Ignorieren von Tatsachen, die uns vor Augen stehen, wird die Situation wahrscheinlich nur verschlechtern.

Here’s an example of different drawdowns and the gains needed to breakeven:

Drawdown Formula

Die Berechnung des Prozentsatzes Ihrer aktuellen Inanspruchnahme ist ziemlich einfach. Sie müssen nur wissen, mit welchem Betrag Sie begonnen haben und wie hoch Ihr aktuelles Eigenkapital ist.

Von dort aus werden wir diese Formel anwenden:

• Startkapital: 10,500$
• Aktuelles Eigenkapital: 8,755$

(1 - (8755 / 10500)) X 100 = 16,619%
oder
(1 - (Aktuelles Eigenkapital / Startkapital)) X 100 = Aktueller Drawdown

Breakeven Point Formula

Um den Prozentsatz der Gewinne zu berechnen, der erforderlich ist, um die Gewinnschwelle zu erreichen, müssen wir unseren aktuellen Drawdown-Wert kennen.

Behalten wir den gleichen Wert wie zuvor bei, so befinden wir uns derzeit in einem Drawdown von 16,619%.

Diese Formel zeigt uns, wie viel wir gewinnen müssen, um die Gewinnschwelle zu erreichen:

(1 / (1 - 0,169)) - 1 = 0,203 oder 20,3%
(1 / (1 - Aktuelle Inanspruchnahme)) - 1 

What is a Breakeven Point

The breakeven point refers to the point at which the cost of purchasing a financial instrument is equal to the revenue generated from selling it.

It’s a crucial concept in trading because it helps traders understand their profitability and risk levels.

Essentially, it’s the point where the profit and loss (P&L) statement of a trade equals zero, indicating that the trade has neither made nor lost any money.

What is a Drawdown

A drawdown is a reduction in the value of a trader’s account from its peak.

It refers to the percentage decline in the account balance from its highest point to its lowest point. It is created losses are incurred from unsuccessful trades or market volatility.

How to lower Drawdown

There are several ways to lower drawdowns and manage risk.

One approach is to use a stop-loss order, which is a tool that automatically closes a trade at a predetermined price level to limit losses.

Setting realistic trading goals and having a well-defined trading strategy. This can help traders make informed decisions and avoid impulsive trades.

It’s also important to monitor the markets regularly and adjust your trading strategies as necessary to adapt to changing market conditions.

Finally, managing your emotions and avoiding the temptation to chase after losses can help prevent large drawdowns and protect your trading capital.

Unser position sizing calculator could help you manage your risk and lower your drawdown. By using strict trading risk management, your losses won’t impact you as much.