The largest peak-to-trough decline in the value of a portfolio or asset.
The largest peak-to-trough decline in the value of a portfolio or asset. If Bitcoin went from $69,000 to $15,500, that's a max drawdown of about 77%. Drawdown is crucial for risk management because it tells you how much you could lose from the highest point before things recover.
Strategies for limiting potential losses in your investments.
How much an asset's price fluctuates over time.
A prolonged period where prices fall 20% or more from recent highs.
A period when smart money quietly buys up an asset before a major price move.
The average yearly return on an investment, calculated to account for compounding.
Profiting from price differences of the same asset across different markets.
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