Maximum Drawdown
Returns the maximum drawdown, which is the largest peak-to-trough decline.
Syntax
=MaximumDrawdowns()Returns
number
Maximum drawdown percentage
Examples
When to Use
- Risk tolerance assessment
- Strategy comparison
- Worst-case analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Current drawdown | Drawdown() |
| Probability-based risk | ValueAtRisk() |
Common Issues & FAQ
What does -0.35 max drawdown mean?
The portfolio lost 35% from its peak at the worst point.
Excel Templates Using Maximum Drawdown
These ready-made MarketXLS templates call MaximumDrawdowns() in their worksheet formulas. Open one to see the function working inside a complete model.
Related Formulas
More MarketXLS Portfolio Analytics formulas you can use in the same worksheet:
- Monthly Returns
- Portfolio Beta
- Portfolio Efficient Frontier Chart
- Portfolio Efficient Frontier Data
- Portfolio Efficient Frontier Report
- Positive Period
- Sharpe Ratio
- Sortino Ratio
See MaximumDrawdowns used in a complete workbook: Portfolio Risk Management: Complete Guide to Measuring and Managing Investment Risk in Excel
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