Question 1

What is maximum drawdown?

Accepted Answer

It is the largest peak-to-trough decline in an account or asset, as a percentage of the peak. It measures the worst pain you would have sat through — a key gauge of risk that average return hides.

Question 2

Why is recovery harder than the drop?

Accepted Answer

Because you recover from the lower base. A 50% loss needs a 100% gain to break even; a 20% loss needs 25%. The deeper the drawdown, the steeper and more asymmetric the climb back.

最大ドローダウン計算機

Drawdown asymmetry punishes big losses