Drawdown Six Months Formula in Excel
The Drawdown Six Months formula in Excel (available with MarketXLS) helps traders and investors quickly measure the peak-to-trough decline of a stock over the past six months. This function is especially useful for risk management and historical performance analysis. By incorporating real-time data from MarketXLS, you can streamline your decision-making process right within Excel.
Understanding Drawdown Six Months
- Purpose: The function calculates the largest price drop from a recent peak within a six-month timeframe, giving you insight into downside risk and market volatility.
- Use Cases:
- Evaluating a stock’s short-term risk profile
- Comparing different symbols to see which has been more volatile
- Identifying historical market dips for strategic entry or exit
- Key Benefits:
- Convenient: Uses current and historical data directly in Excel.
- Accurate: Automatically updates with reliable MarketXLS data feeds.
- Time-Saving: Quickly review six-month drawdown without manual calculations.
Syntax and Parameters
Use the formula in Excel by referencing a valid symbol. The syntax is:
=DrawdownSixMonths(Symbol)
Parameter | Description | Required | Example |
---|---|---|---|
Symbol |
The ticker or identifier for the security (e.g., stock, ETF, index, crypto, or option). | Yes | "MSFT" |
Return Value
The formula returns a numeric value (as a percentage) indicating the peak-to-trough decline over the last six months. For example, a return of -12.50
signifies a 12.50% peak-to-trough decline.
Error Handling
- If the ticker is invalid or data is unavailable, the function returns NA.
- If the MarketXLS license is not valid, the function also returns NA.
Performance Considerations
- The function queries MarketXLS servers for historical price data.
- Results may vary based on internet connectivity and the availability of market data.
?? Note: Make sure you have a valid MarketXLS subscription for uninterrupted data.
Examples and Usage
Below are some examples that illustrate how to use the DrawdownSixMonths
function with different symbol types:
=DrawdownSixMonths("MSFT") // Regular symbol
=DrawdownSixMonths("^SPX") // Index
=DrawdownSixMonths("@MSFT 110122C00020000") // Option
=DrawdownSixMonths("BTCUSD:DEFAULT") // Crypto
? Pro Tip: You can combine this function with Excel conditional formatting to highlight stocks that exceed a certain drawdown threshold.
Real-World Applications
- Portfolio Risk Analysis: Quickly scan multiple tickers in a spreadsheet to see which ones experienced the largest drop.
- Trend Identification: Combine with technical indicators to confirm short-term trends and validate potential buy or sell signals.
Common Questions
-
Why am I getting NA?
- Check if your symbol is valid or if your MarketXLS license has expired.
-
Can I use date inputs?
- This function automatically fetches the last six months of data. You do not need separate date parameters.
- For date-sensitive functions that do require dates, you can typically reference a cell (e.g.,
=Function(A1)
), insert direct dates (e.g.,=Function("2024-03-15")
), or use Excel date functions (e.g.,=Function(TEXT(A1,"yyyy-mm-dd"))
).
-
Does this work on non-US markets?
- Yes. If MarketXLS supports the ticker, the formula returns data for that exchange.
-
Are there related functions?
- Total Dividends Paid Between Two Days In The Past
- Stock Return Seven Days
- Stock Return Fifteen Days
- Stock Return Thirty Days
These functions similarly leverage MarketXLS data to provide insights into dividends, multi-day returns, and other performance metrics.