The withdrawal of funds usually refers to the degree that the net value of an account moves backwards from the highest value (or extremely high value) until the net value falls back to the lowest value (or extremely low value) in a certain period of time. In the selected time period, sometimes there will be several cases of net value falling back. At this point, choose a maximum drawdown as the maximum drawdown.

So the biggest retracement is not necessarily: the highest net worth-the lowest net worth, it may appear in one of several periods of decline. This comes from the concept of extreme value in mathematics, that is, to delimit the curve in a certain range. In this range, the values at both ends of each descending curve (extremely high value and extremely low value) are subtracted to calculate multiple differences, and the maximum difference is taken as the maximum retreat.

The maximum withdrawal rate is not necessarily (the highest net value-the lowest net value)/the highest net value, and may appear in a certain period of decline.

The formula can be expressed as follows:

D is the net value of a certain day, I is a certain day, J is the day after I, Di is the net value of the product on the first day, and Dj is the net value of the day after Di.

Withdrawal is the maximum withdrawal rate.

Drawdown=max(Di-Dj)/Di, in fact, is to evaluate the withdrawal rate of each net value, and then find out the largest. It can be realized by program.

The specific performance of Baidu Encyclopedia's maximum cash withdrawal rate.