Peak-to-valley Drawdown
Definition
A statistical performance evaluation method for any fund, trading program, or investment strategy. All investments and asset holdings go through relative valuation highs and lows over different time periods. When evaluating an asset holding, the last peak valuation is marked. Then, the last valuation low immediately after that high is noted. These peaks and valleys are used to gauge how long it will take for the asset to return to its recent high.
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