TickTick Drawdown
Drawdown is a term used in finance to describe the decrease in the return curve from the highest to the lowest point. It represents the worst series of losses and helps traders understand how much they can afford to lose and which strategies to use to reach their trading goals.
In trading, drawdown is a term used to gauge the maximum amount a trader can lose. It also allows us to understand the techniques utilized by each trader, the fluctuations in their account, and how they aim to achieve their end goal.
Computation
During the evaluation phase of your trading career, your permitted Drawdown will trail with your account balance, but it will only be calculated when your account balance reaches a new peak at the end of each trading day.
This calculation considers only the profits that you have realized until that point while disregarding any unrealized profits that you may have been targeting throughout the day.
However, your account will be liquidated if its current balance exceeds the value of your drawdown limit.
If you have a TTTPerformance Account, it's important to know that the TickTick Drawdown works a bit differently. You can find more information about this in the main article at TTTPerformance Account Trading Rules.
Pro Tip: You can utilize your Trading Dashboard on R|Trader Pro to monitor your trading outcomes. Just follow the steps detailed below.
Example
Imagine you’re trading with a 100k Pro account over five (5) days with a TickTick Drawdown of $3,500.
| Trading Days | Open Position Balance | Balance at Closing | TickTick Drawdown |
| 1st Day |
$100,500 |
$100,000 | $96,500 |
| 2nd Day | $100,800 | $98,000 | $96,500 |
| 3rd Day | No trading done on the 3rd Day | $96,500 | |
| 4th Day | $103,000 | $100,000 | $96,500 |
| 5th Day | $105,000 | $104,000 | $100,500 |
This example shows how the TickTick Drawdown ignores unrealized profits, taking into account only the realized gains at the end of the trading day.
TickTick Drawdown in R|Trader Pro
To check your TickTick Drawdown in Rtrader Pro, follow these steps:
- Log into your Rithmic account using your username and password.
- Go to the "Trader’s Dashboard" section of the platform.
- Right-click the column header and click “Add/Remove Column”.
- Find and search for “Auto Liquidate Threshold” and click on the box to add the column to your R|Trader Dashboard.
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The value you will find under the “Auto Liquidate Threshold” field is your Drawdown or your Minimum Account Balance.
Note: Once you have added the “Auto Liquidate Threshold” field, you can rearrange your columns to your specification.