What Is Maximum Drawdown? Why Can an Account That Was Once Profitable Suddenly Face Serious Risk?

In cryptocurrency trading, many people track cumulative returns but overlook how far an account has fallen from its peak. Even an account that was once highly profitable can lose most of its gains after a series of subsequent losses. Maximum Drawdown (MDD) is an important metric for measuring this kind of risk.

First, what is maximum drawdown?

Maximum drawdown is the largest decline in an account’s equity from a peak to a subsequent trough during a specified observation period, usually expresse

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CryptoMishuan hour ago

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Gate_Square2026-11-10 03:43:51

ZyraCrypto 3 hours ago

[NEW STREAMER]BTC,ETH,SOL UPDATE

LIVE1,480

CryptoCircleBullSays 42 minutes ago

Sony China has announced that it will launch the MDR-3R wired headphones at 12:00 noon on November 17. The overseas version features the classic look of the original Walkman TPS-L2, comes with replaceable ear pads, and swaps the 3.5 mm jack for USB-C. It also has a built-in microphone and in-line controls.

At first glance, they have that retro 1979 vibe. But plug them into your phone and you realize we’re already living in the USB-C era. This mix of old and new is pretty interesting.

$BTC

BTC-1.31%

FishingUncleBigShrimp an hour ago

ETH is likely to trade sideways again between 2110 and 2150, just like it did between 2210 and 2250 a few days ago. Trade the range with a stop-loss, setting it just a little beyond your entry.
Range trading captures profits within the range, but both of these higher timeframes are still in a downtrend. Always use a stop-loss when trading; don’t blindly add to your position or hold on to losing trades.

ETH-1.26%

ChenJiajunOnCryptocurrencyan hour agoBullish

Straight to the point:
2-hour timeframe: EMAs are in a fully bearish alignment. The MACD red histogram bars have extended to 127.7, signaling a brake on the bearish move, not a bullish reversal. The BOLL middle band at 74898 is pressing right overhead.
15-minute timeframe: A small-scale golden cross, TD 1, and five moving averages tangled between 74784–74929; wait for a direction.
Trade reference:
Try a long: If price pulls back to 74400–74450 and holds, go long; stop-loss at 74150, targets at 75200–75800.
Try a short: If a rebound to 75500–75800 is rejected and closes bearish, go short; stop-

ETH-1.23%

CryptoJourney12 hours ago

NO HIDING THE LOSSES: A RAW LOOK INSIDE MY RECENT TRADE BATCH. 📊

Let’s be real for a second. Trading isn't about winning 100% of the time; it’s about managing risk and letting the math play out over time. I’m pulling back the curtain to show you my actual recent stats on SokoData so you can see exactly how this works.

Here is the overall performance breakdown:
· Wins: 92
· Losses: 83
· Avg ROI: +1.0%
· Best Trade: +31.9%
· Worst Trade: -23.8%
· Avg Hold: 26.9h

This is what actual trading looks like. You take hits, but you manage them. Now, let's break down the recent batch of trades execut

PEPE+1.05%

CryptoJourney1an hour ago

$XRP ‌ IS SLEEPING IN A BEARISH ZONE! DON'T GET FOOLED BY THE GREEN CANDLE. 🐢

You know that feeling when you look at the charts and the market is just completely dead? That is exactly where XRP is right now.

Yes, it’s showing +0.30% on the 24-hour change, but don’t let that tiny green number trick you. The overall Market Structure is firmly Bearish.

Let's cut through the noise and look at the raw data:
· Current Price: $1.1
· **Market Cap:** $69.94B
· Volume Change: Only 3% of Mkt Cap (The market is asleep).
· OI Change: -0.5%
· Funding Rate: +0.2914% (Long/Short ratio is 0.96x).
· Volati

XRP-1.12%

SheenCrypto30 minutes ago

I've joined Gate #WCTCS9 . Join now, trade global assets, and share in 6,000,000 USDT with me! https://www.gate.com/competition/wctc-s9?ref_type=165&utm_cmp=tgv0wayw&ref=VLARBF1YAG

YaoYao 39 minutes ago

$SOL Solana trade idea played out
We anticipated a short in the 86.5–88.5 resistance zone on a rebound. Price surged to 86.99, met resistance, and moved lower, reaching near the first target of 85.5. The weak market unfolded as expected. #AVAX利好短时上涨6.4%

YaoYao2026-11-10 02:26:05

$SOL Yaoyao | 11.10 SOL outlook
Entry: Short on a rebound near 86.5-88.5
Stop-loss zone: Above 89
Levels to watch: 85.5-84.5
The hourly rebound high of 88.2 formed effective resistance. The second rebound failed to break the previous high, forming a lower high—a typical weak rebound;
Price has already fallen below the consolidation range around 86.5, with consecutive bearish candles moving lower and the center of consolidation continuing to shift down as bearish momentum plays out;
The rebound is a corrective move after the decline, not a reversal. Price is likely to face renewed resistance and pull back when it reaches the nearest resistance zone.#70%山寨币跌破200日均线

SOL-0.74%

MrFlower_XingChen an hour ago

GateLiveChinese2026-11-10 05:51:34

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GT-2.41%

APureJoyBit 2 hours ago

Short-term weakness: Gold prices have declined in recent sessions, and the rebound has yet to form a clear reversal.
Medium-term support: Central bank gold purchases and safe-haven demand remain, but high interest rates will limit upside.
Trading approach: Seek small profits from swings; wait for declines to slow and the rebound to persist before building a position in stages, avoiding chasing prices all at once.

BTC-0.67%

XAU+0.38%

BlockchainTuoge2 hours ago

$JCT This price action is enough to make your scalp crawl: down 20% in 24 hours, with the price now at 0.0075. The people in the group who were shouting “send it” this morning are all playing dead now. This move is like someone suddenly yelling “The market inspectors are here!” just as the market is closing—everyone tramples each other before checking whether the goods are any good. Trading volume surged to 772.9M, showing panic sellers and dip buyers are battling it out between 0.0067 and 0.0118. The money isn’t fleeing; they’re just calling each other idiots.
Sentiment-wise, this is a classi

JCT-3.26%

ACaiStar 44 minutes ago

What Are Long Squeezes and Short Squeezes? Why Can Concentrated Positions Amplify Price Volatility?

In the cryptocurrency market, prices can sometimes surge or plunge suddenly within a short period, even without any obvious new developments. One reason for this is that concentrated leveraged positions can trigger successive position closures or forced liquidations as prices move.

First, what is a short squeeze?

When many traders hold short positions, a sudden price increase may force some of them to buy to close their positions. Leveraged positions may also trigger forced liquidations. Thes

ChenAn 28 minutes ago

BTC fell to the 73k level, with net outflows from ETFs on 4 of 5 trading days, totaling approximately 1.28 billion. During the price pullback, this should have been a window for institutional funds to accumulate on dips, but there has been no sustained inflow through ETF channels. This is the first weak signal.

　　A clearer picture of actual spot supply and demand comes from on-chain data. Glassnode data as of November 8 show spot CVD falling to -91.8 million, meaning that aggressive sellers still dominate the spot market.

　　What truly worries me has never been how much the price has fallen,

BTC-0.65%

CryptoCircleBullSays 39 minutes ago

$AVAX Currently at 8.513, up 7.66% over 24H. The 1H timeframe looks weak, with RSI at just 29.57 and low volume; the price remains below EMA20. The 4H timeframe is stronger, with RSI at 55.56. The two timeframes show a clear divergence, so don’t rush to interpret short-term volatility as a trend reversal. Watch these conditions: if the price can hold above resistance at 9.014, assess whether the rebound can continue; if it breaks below support at 7.814, beware of a deeper pullback. The key point to check in the next review is whether the price can hold above resistance at 9.014. The setup is i

AVAX-0.10%

Real-TimeTradingOfMiShen 2 hours agoBullish

Ranked #33 in 30D Futures Lead Trading AUM

Strategy update! Get ready to make a move! Prepare for tonight's CPI! $BTC ‌

BTC-0.65%

KRenJizhaoSuperGod an hour ago

$KORU Kou Rou keeps going long! The rebound is very strong! I noticed something: the people who commented under my post a couple of days ago saying it couldn't rebound and was going to crash have disappeared 🤪🤪🤪🤪

KORU-1.22%

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