The largest peak-to-trough decline in portfolio value during a specific period. A critical risk metric — even strategies with high returns are dangerous if max drawdown is too large.
The largest peak-to-trough decline in portfolio value during a specific period.
A critical risk metric — even strategies with high returns are dangerous if max drawdown is too large.
This concept is critical for crypto traders of all levels. Mastering it can mean the difference between consistent profits and costly mistakes in volatile markets.