What is a Strategy Draw Down?

This is the maximum allowable number of pips you are willing to lose for this strategy before it stops running.

If you fid yourself hitting this limit, you may need to change some of the settings (risk or algorithm) or look at the market conditions to see why it is losing.

If it backtested well, but is not performing well live, it’s possible that your strategy is not suited to the current market conditions.

The Strategy Drawdown is here to protect you from exactly this type of scenario.