Drawdown
The peak-to-trough decline of an account or a stock — how far it has fallen from its high, a core measure of risk.
Drawdown measures the drop from a high-water mark to a subsequent low, in percent. For an account it captures the worst losing stretch; for a stock it shows how far it's pulled off its highs. It's the number that tests a trader's discipline.
Drawdowns are asymmetric to recover: a 20% drawdown needs a 25% gain to get back to flat, a 50% drawdown needs 100%. That math is the whole argument for cutting losses early and sizing risk so no single trade or streak can dig a hole you can't climb out of.
On StockSetups
By shipping a stop with every setup, StockSetups caps the drawdown on each trade before the recovery math turns brutal; the percentage-gain calculator shows exactly how much a given loss takes to recover.
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