RiskMetricsMembers
Drawdown, Risk of Ruin & Losing Streaks
intermediate·7 min read·Tier 3
What drawdown really measures, why a string of losers is normal even with a good edge, and how to size so a cold streak can't end you.
Two traders can have the same end-of-year return and completely different experiences getting there. One drifted up smoothly; the other was down 40% in the spring and clawed back. Drawdown is the metric that captures that difference — and it is the one that actually decides whether you stick with a strategy or quit at the bottom.
What drawdown actually measures
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