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Risk management

What is a drawdown, and why every investor needs to understand it

A drawdown is the fall from a portfolio's recent high to its lowest point before recovery. It matters because two traders can show the same return while taking completely different levels of risk.

At Edgeworth, drawdown is treated as a primary signal, not a footnote. EdgeGuard watches drawdown limits continuously and can pause copying before small losses become unrecoverable losses.