Understanding drawdown

What is drawdown?

Drawdown is the peak-to-trough decline in account value before a new peak is reached.

Example: a 20% drawdown means the account temporarily fell 20% from its highest point.

Is drawdown common with BTC Breakout?

Yes.

Bitcoin is extremely volatile.

Large single-day drawdowns have occurred multiple times and are to be expected.

Drawdown periods on BTC Breakout usually occur in a slow and linear manner.

It can take days or weeks to reach maximum historical drawdown levels.

It is not typically a sudden overnight loss.

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