ForexogramThe essentials
Decide the loss you can afford, a rationale for entry and exit, and the total exposure across positions. Two trades can share the same underlying currency risk even when their symbols differ.
Put it in context
A drawdown is a decline from a prior peak; programme contracts can use different definitions. After a 20% decline, a 25% gain is needed to return to the starting value. Losing streaks can occur even with a historically profitable strategy.
Before you act
Record assumptions and outcomes. Evaluate costs, sample size and adverse scenarios rather than selecting only successful examples.
Further reading: CFTC forex education, BLS CPI, Federal Reserve monetary policy. Reviewed 6 October 2026.