The largest fall from a past peak to the following trough
It states, as a percentage, how far a value dropped from its highest point to its lowest within a period. Average returns hide the worst stretch; this number shows it, which helps in judging whether the holding could be kept through it. The time taken to recover is read alongside it.
A value falling from 10,000 to 6,000 before recovering has a maximum drawdown of 40%.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.