Extended knowledge: the maximum extraction rate refers to the maximum extraction range of yield at any historical point in the selected period when the net product value reaches the lowest point. Maximum retracement is used to describe the worst possible situation after purchasing a product. Maximum retracement is an important risk indicator, which is more important than volatility for hedge funds and quantitative strategy trading.
Using popular thinking in the subscription of stock index futures fund products can be understood as. Exit is used to measure the anti-risk ability of private placement products.
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.