= Drawdown
{disambiguate=economics}
{title2=$D_t=\max_{s\le t}y_s-y_t$}
{wiki}
= Financial drawdown
{synonym}
The absolute decline from a previous running peak of a cumulative-value process. For positive peak values a relative decline can also be defined, but that is a different unit convention. Flat intervals do not end a drawdown, and a brief recovery that stays below the previous peak does not necessarily end it either. A maximum consecutive strictly negative run is therefore not generally a maximum drawdown.
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