A loss is the result of a single trade that went against you. A drawdown is the distance of your account balance from its last high, everything given back since that high. A loss is a number, a drawdown is a stretch: it starts at the high and only ends when a new high is made.
| Criterion | Loss | Drawdown |
|---|---|---|
| Reference | One trade | The account since its last high |
| Unit | Amount or R | Percent from the high |
| Starts | At entry | At the account high |
| Ends | When the trade closes | At the next new high |
| Can it grow despite winning trades? | No | Yes, as long as the gain does not reach the old high |
| Where it counts | Trade journal, risk per trade | Equity curve, prop firm rules |
When you evaluate a single trade or setup: how big the risk was, how big the loss in R, whether the stop sat where it was planned.
When account rules and recovery are the topic. Prop firms measure drawdown, not single losses. And a 20 percent drawdown needs a 25 percent gain to get back to the high.
Can I be up since I started and still be in a drawdown?
Yes. An account goes from 1,000 to 1,500 and falls to 1,200. Since the start that is plus 200; from the high it is a 20 percent drawdown. Both are true at the same time.
Educational content, not investment or tax advice. Neutrally contrasted, not a recommendation of either approach. Trading leveraged products carries risk of total loss.