Understanding drawdown

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Risk and controls

See and limit strategy drawdowns before deployment.

You run strategies manually or tweak settings ad hoc and then get surprised by a large decline in your account balance. You are not sure whether a reported loss is volatility or a true peak to trough drawdown and how long recovery might take. You do not have a simple way to translate historical drawdowns into position size limits stop rules or diversification choices for bots.

Liquid Edge runs your trading bots on the exchange account you already hold.

Measure peak to troughUse the bot trade history that runs on your exchange account to compute peak to trough declines and express them as absolute values and percentages for apples to apples comparison.
Turn metrics into settingsMap maximum drawdown and likely recovery time to concrete bot parameters like position size limits risk per trade stop placement and diversification across strategies and symbols before you deploy a bot.
We never get withdrawal rights. Anywhere.On a perp DEX your funds sit in an isolated onchain vault only you can withdraw from. On a centralized exchange the exchange custodies them and we connect with API permissions limited to trading. Neither route lets Liquid Edge move your capital.

Want to get started? Walk through setup, covering everything from connecting an exchange to launching your first bot. Or read How Much a Trading Bot Should Risk Per Trade for more on this.

Read the full FAQ