The meaning of retracement refers to the extent to which the net value of products falls from the highest point to the lowest point in a certain period of time.
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.