Maximum-Drawdown Reviews: A Worked Crypto Example With Fees Included
Maximum drawdown is the largest fall from an equity peak to a later low. It is measured on the equity curve after fees, not on single trades.
Short answer
Maximum drawdown = (peak equity − subsequent trough) ÷ peak equity, using net equity after every fee. Example: starting at $10,000, nine net results of +400, +250, −300, −450, −200, +150, −380, +600 and +700 take equity to a peak of $10,650 and a later trough of $9,470: a drawdown of $1,180, or ≈ 11.1%. No single loss exceeded $450; the drawdown came from a cluster. Review drawdown by its length and by which setups formed it.
Worked example
| Step | Value |
|---|---|
| Start equity | $10,000 |
| Peak | $10,650 (after trade 2) |
| Trough | $9,470 (after trade 7) |
| Drawdown | $1,180 |
| Max drawdown | ≈ 11.1% |
| Largest single loss | $450 |
| End equity | $10,770 |
Review questions
| Question | Why |
|---|---|
| Which setups formed it? | Find the leak |
| How long to recover? | Time under water |
| Fees in the trough? | Costs add up in clusters |
| Sizing changes? | Did size grow during it? |
Conclusion
Related: Profit-Factor Journal Reviews: A Worked Crypto Example With Fees Included, Losing-Streak Planning: A Worked Crypto Example With Fees Included.
Plan the same calculation with ChartsPod's position planner.
Open the ChartsPod terminalMaximum drawdown = (peak equity − subsequent trough) ÷ peak equity, using net equity after every fee.
See Maximum-Drawdown Reviews on live data in the free ChartsPod terminal.
Open the ChartsPod terminalQuestions readers ask
How is max drawdown calculated?
Peak-to-trough fall of the equity curve ÷ peak.
Is it the largest loss?
No; it's usually a cluster.
Fees included?
Yes; use net equity.
Sources and methodology
Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).
- Bybit: Liquidation process — mark price and margin modes.
- ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.
This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.
CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.