Maximum drawdown
Maximum drawdown is the largest peak-to-trough decline in account equity during a backtest or live period. Critical psychological and capital-management constraint: a 50% drawdown requires a 100% gain to recover.
Maximum drawdown is the largest peak-to-trough decline in account equity during a backtest or live period. Critical psychological and capital-management constraint: a 50% drawdown requires a 100% gain to recover.