Peter Brandt’s Charting Tool
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Recent Posts:
Primer: Interest Rates & The Fed (+FREE .PDF)December 3, 2025 - 8:30 pm
Loss Aversion: A Mental Trap Every Trader Needs to KnowNovember 19, 2025 - 6:52 pm
Three Day Trailing Stop (Video)October 24, 2025 - 5:25 pm
One Year Later: GE, Classical Charting, and Avoiding Dead MoneyJuly 22, 2025 - 1:01 pm
S&Ps — a breakaway down gap is very possible
/by Peter BrandtTrading stock index, commodity-related and forex-related ETFs is a foolish use of trading capital
/by Peter BrandtUS Dollar is set to gain against the Chinese 元/圆 (Yuan)
/by Peter BrandtOnly in Colorado — a private placement offering going to pot
/by Peter BrandtThe Indian Rupee — a textbook case in classical charting principles
/by Peter BrandtWhat trading over the course of five different decades has taught me about drawdowns
/by Peter BrandtTraders talk a lot about Trading Drawdowns. But what are they exactly? How are they measured? What do they mean? Can they be prevented? If not, how does a trader deal with them.
In the world of futures and forex, Trading drawdowns are measured based on month-end to month-end net asset value (or nominal account value). I know a number of traders who will measure drawdowns on a week-ending basis. I really do not know many traders who measure drawdown levels on a day to day basis. I was clipped today by about 170 basis points (1.7%), but that is not a drawdown. Day to day asset volatility does not represent a drawdown.