Max drawdown (dollars) formula
Author: inandr
Creation Date: 7/30/2014 7:14 AM
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inandr

#1
Hello, could any one kindly write formula for max drawdown (dollars) calculation?
I try to calculate my results in excel and get other figures than wealthlab gives...
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Eugene

#2
You can find it in the Wealth-Lab User Guide > Preferences > Performance Visualizers > Performance > "The Bottom Line". Namely:
QUOTE:
Max Drawdown is the largest peak to valley dollar decline in the system's Equity Curve. Wealth-Lab reports Drawdown on a closing price basis.


P.S. Suggestion: don't waste time trying to verify the correctness of formulas in the various built-in (preinstalled) visualizer tabs. It's safe to assume that all bugs in them have already been discovered.
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