Maximum Drawdown
Measure your worst peak-to-trough decline
Quick MDD
Drawdown Analysis
Portfolio Value History
Enter portfolio values over time (daily, weekly, monthly)
All Drawdowns
| # | Drawdown | Peak | Trough | Status |
|---|
Drawdown FAQ
70% drawdown - is that normal for crypto?
Unfortunately yes. BTC has done 80%+ multiple times. Altcoins routinely drop 90%+. If you can't handle it, reduce exposure or add hedges.
How to calculate recovery needed?
Recovery % = 1/(1-DD) - 1. After 50% loss, need 100% gain to break even. After 80% loss, need 400% gain. The math is brutal.
MDD of my portfolio vs BTC?
Compare them! If your MDD is worse than BTC, you're taking more risk than necessary. Might as well just hold BTC and chill.
Can stop-losses prevent drawdowns?
Can limit them, yes. But in flash crashes, you might get filled worse. And you'll miss recovery if you don't re-enter. No free lunch.
Historical MDD predicts future?
Not perfectly, but it's a guide. If an asset dropped 80% before, assume it can again. Plan for the worst, hope for the best.
Best MDD for my risk tolerance?
Rule of thumb: if you'd panic sell at X% loss, your allocation should cap MDD at X%. Sleep test > math.
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