What is Drawdown?
The fall from a previous peak to the current low; max drawdown is the worst one on record.
Drawdown measures how far a price has fallen from its high, in percentage terms. The maximum drawdown over a window is the deepest such fall.
It is the number that describes risk to a holder rather than to a forecaster: a coin can end the year flat and still have halved twice on the way.
How our model uses it
Max drawdown over the past year is one of the six risk-score inputs, weighted 0.15.
Related terms
- VolatilityTechnical analysis
How much a price swings, usually annualised from recent returns; the core input to any range.
- All-time high (ATH)Basics
The highest price a coin has ever traded at, and often the level holders watch first.
- Risk scoreOur model
A 0–100 blend of volatility, liquidity, size, drawdown, exchange count and age.