Drawdown vs Drawdown Trigger

Quick comparison to help you distinguish these two crypto terms.

Drawdown
intermediate
risk

The percentage decline in account value from its highest recorded point to its subsequent lowest point before a new peak is reached, used as the primary measure of strategy risk.

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Drawdown Trigger
intermediate
risk

A predefined drawdown threshold that automatically activates a specific protective response — such as reduced position sizing or a full trading pause — when account losses reach that level.

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