Risk & Drawdown
P/D Ratio
Profit target divided by drawdown. The quickest single number for how hard an evaluation is: lower means the target is closer to your cushion and easier to reach.
In plain English
The P/D ratio compares what you must make against what you may lose. A ratio of 1.5 means you need 1.5 dollars of profit for every dollar of loss allowance. Under about 1.5 is favorable; above 2.5 you need excellent win rates to survive variance.
It is not the whole story, because drawdown type, daily limits, and consistency rules all modify real difficulty, but it is the best first filter when scanning a table of accounts.
- A $3,000 target with a $2,000 drawdown is a 1.5 P/D.
- A $3,000 target with a $1,000 drawdown is a brutal 3.0.