Maximum drawdown calculation or MDD is the thing that takes peak values in its consideration & lets you know what is the highest limit of loss that a company can survive. You can use a calculator to know the peak values & trough value to draw a graph & observe the ups & downs.
The MDD is not clumsy thing to measure & you won’t need any intermediate values to know the actual ones; that’s essential.
What Are the Uses of Maximum Drawdown Calculation?
- The calculation can make you aware of the risk factors of your business or stock marketing strategies that can cause you a huge loss.
- Moreover, the peak values can show you the ways & amount of profit you can make in the process.