The drawdown measures a single, consecutive loss from peak to trough. In simpler terms, a drawdown lasts from the peak through the trough until a new peak appears.
Maximum drawdown is defined as the most significant loss due to trading activity since the fund’s inception. It is calculated based on cumulative return changes and updated every hour.
The drawdown calculation will include closed and open orders as cumulative returns are based on equity. If the maximum drawdown is high, the risk of losing capital is also likely high.