diff --git a/docs/includes/protections.md b/docs/includes/protections.md
index 0a37f8d10..786879e15 100644
--- a/docs/includes/protections.md
+++ b/docs/includes/protections.md
@@ -69,10 +69,16 @@ def protections(self):
 
 #### MaxDrawdown
 
-`MaxDrawdown` calculates the maximum relative drawdown using the account's equity curve within the `lookback_period` in minutes (or in candles when using `lookback_period_candles`).
-It evaluates the portfolio's peak-to-trough declines by considering the starting balance and the cumulative profit of all trades within the window. If the observed drawdown exceeds `max_allowed_drawdown`, trading will stop for `stop_duration` after the last trade - assuming that the bot needs some time to let markets recover.
+`MaxDrawdown` supports 2 calculation modes within the `lookback_period` in minutes (or in candles when using `lookback_period_candles`):
 
-The default calculation method is the sum-of-profit-ratios method (`calculation_mode: "ratios"`) for backward compatibility. To use the standard peak-to-trough equity drawdown (recommended), set `calculation_mode: "equity"`.
+- `calculation_mode: "ratios"` (default): Legacy approximation based on cumulative profit ratios.
+- `calculation_mode: "equity"`: Standard peak-to-trough drawdown on the account equity curve, using starting balance and cumulative absolute profit.
+
+With `calculation_mode: "ratios"`, drawdown is derived from cumulative trade profit ratios, not from the account equity curve. This is kept for backward compatibility and can differ from account-level drawdown when position sizing changes over time.
+
+For new setups, `calculation_mode: "equity"` is recommended. Prefer `calculation_mode: "ratios"` only when you intentionally rely on legacy behavior, especially with fixed stake amount configurations where ratio-based behavior is easier to reason about.
+
+If the observed drawdown exceeds `max_allowed_drawdown`, trading will stop for `stop_duration` after the last trade - assuming that the bot needs some time to let markets recover.
 
 The below sample stops trading for 12 candles if max-drawdown is > 20% considering all pairs - with a minimum of `trade_limit` trades - within the last 48 candles. If desired, `lookback_period` and/or `stop_duration` can be used.
 
@@ -82,6 +88,7 @@ def protections(self):
     return  [
         {
             "method": "MaxDrawdown",
+            "calculation_mode": "equity",
             "lookback_period_candles": 48,
             "trade_limit": 20,
             "stop_duration_candles": 12,