Maximum drawdown
Maximum drawdown is the largest cumulative fall from a peak to the subsequent trough over a period. It measures the worst blow suffered by someone who bought at exactly the wrong moment, and it is the figure that best predicts whether an investor can stick with a strategy: a portfolio with a 50% drawdown needs a 100% rise just to get back to where it started.
See also
See it on real data
Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.