Calculate maximum drawdown and recovery analysis. Supports simple mode and return series mode with visual risk assessment. Client-side calculation.
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📊 Mode Selection
📈 Simple Mode - Enter Values
Starting investment amount
Highest value reached
Lowest value reached
Current investment value
📊 Series Mode - Enter Returns or Prices
Enter each period's price or return, one per line
📈 Drawdown Analysis
Max Drawdown (%)
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Peak-to-trough decline
Max Drawdown ($)
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Loss amount
Recovery from Peak
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Trough to current recovery
Initial
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Starting point
Current Value
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Current status
Total Return
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Initial to current
📖 What is Maximum Drawdown?
Maximum Drawdown (MDD) is one of the core metrics for measuring investment risk, representing the largest peak-to-trough percentage decline in portfolio value. It directly reflects the worst-case loss an investor might face.
Why care about maximum drawdown?
Assess Risk Tolerance：If MDD exceeds your psychological tolerance (e.g., 30%), the investment may not be suitable for you.
Compare Strategies：Two strategies may have similar annual returns but vastly different MDD.
Fund Manager Evaluation：Professionals often use MDD to evaluate risk management skills.
Position Sizing：Understanding historical MDD helps set stop-loss levels.
Interpretation Guide
<10%: Low risk, suitable for conservative investors
10-20%: Moderate risk, typical for balanced funds
20-35%: Higher risk, common for equity funds
>35%: High risk, common for individual stocks or leveraged ETFs
>50%: Extreme risk, may not be suitable for most retail investors
❓ FAQ
Difference between MDD and volatility?
Volatility measures overall price movement magnitude (both up and down), while maximum drawdown only focuses on peak-to-trough declines. Volatility is "statistical risk", while drawdown is "actual pain level" — the latter is more intuitive for investors.
How to use drawdown data to optimize investments?
After understanding your portfolio's historical MDD, you can: ① Set stop-loss points; ② Adjust position sizing; ③ Prepare mentally. For example, if a strategy has 25% historical MDD, you can stay calm during a 20% drawdown instead of panic selling.