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Profit-to-Drawdown Ratio
A comparison between a reported profit or return measurement and maximum drawdown.
The exact calculation can vary. Before comparing ratios, identify which profit measurement is used, how drawdown is calculated, whether both use the same units, and which period is covered.
Also called:
Profit/Drawdown; return-to-drawdown ratio; return over max drawdown
Related terms:
Net Profit; Maximum Drawdown; Test Period
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