Maximum retracement refers to the maximum retracement 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. For example, in a month, the net value of a fund rises to Yuan at the highest and then falls to Yuan at the lowest, so the highest loss of this fund in this month is Yuan, and the biggest retreat is ÷ src = "/img _ mtrl/2020-05/957/20200520160754907.jpg. The most intuitive thing is that through the historical maximum retracement data, we can roughly understand what the possible maximum loss is after buying this fund, and we can also understand the level of fund managers through the maximum retracement. Regardless of other conditions, the better the maximum withdrawal of funds is controlled, the higher the level of fund managers and the better their ability. or vice versa, Dallas to the auditorium

In the same time interval and under the same fund increase conditions, different maximum retracements bring different investment experiences to investors, all of which have increased by 50%. Fund A fell by 20%, then rose by 70%. Fund B rose by 20%, and then continued to rise by 30%. In the first case, when the market falls by 20%, many investors may choose to withdraw from the market. Therefore, if you grasp the maximum withdrawal, investors are more likely to insist on long-term investment.

How to screen funds through the maximum retracement data index in the investment process?

Different types of funds have different maximum withdrawal screening criteria, so we should compare similar funds and exclude funds with higher maximum withdrawal data.

Among the remaining funds, similar funds choose the fund with the largest withdrawal amount in the case of similar historical returns. Of course, we can't blindly pursue a smaller maximum retreat. If the fluctuation range is too small, it means that the fund is too conservative, and we are more likely to miss the opportunity to get more income in the bull market.