Glossary
Drawdown
A drawdown is the decline from a portfolio's or asset's peak value to its subsequent low point, usually expressed as a percentage.
Why it matters
Drawdowns are one of the clearest ways to understand how much pain a strategy could put an investor through, separate from its average return, which can look fine even while hiding a rough ride along the way.
How CORVIX uses it
CORVIX's backtester reports maximum drawdown alongside return figures for every strategy run, so a high average return that came with a brutal drawdown doesn't get hidden.