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.

作为交易者，了解并承认我们目前的情况是至关重要的。忽视摆在我们面前的事实，可能只会使情况恶化。

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

Drawdown Formula

计算你目前的缩减百分比是很容易的。你只需要知道你开始时有多少钱和你目前的资产。

从那里，我们将应用这个公式。

• 起始价：10,500$
• 当前权益：8,755$

(1-(8755 / 10500)) x 100 = 16.619%
或
(1-(当前权益/起始权益)) X 100 = 当前缩水

Breakeven Point Formula

为了计算收支平衡所需的收益百分比，我们需要知道我们目前的缩水值。

保持与之前相同的数值，假设我们目前处于16.619%的缩水状态。

这个公式将告诉我们，我们需要获得多少收益才能实现收支平衡。

(1 / (1 - 0.169)) - 1 = 0.203 或 20.3%
(1 / (1 - 当前提款)) - 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.

我们的 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.