Retraction of funds, also known as the maximum retraction rate, is the maximum value of the magnitude of the retraction of returns when the product's net worth goes to its lowest point at any historical point in a selected period, working backwards. Maximum retracement is used to describe the worst-case scenario that can occur after buying a product. Maximum retracement is an important risk metric that is more important than volatility for hedge fund and quantitative strategy trading.
The magnitude of the retracement of a stock's return when its net value goes to a low point at any historical point in a selected period, pushed backward. Retracement of funds is used to describe a potentially bad situation that could occur after buying a product. Retracement of funds is an important risk indicator, and for stocks it is more important than volatility.
Stock is a certificate of ownership issued by a joint-stock company, which is a valuable security issued to shareholders as a certificate of ownership for the purpose of raising capital and obtaining dividends and bonuses. Each share of stock represents a basic unit of ownership of the enterprise by the shareholders. There is a public company behind each stock.
Expanded Information:
1. The smaller the money retraction, the better;
2. Retraction and risk are directly proportional to each other.
Reference:
Baidu Encyclopedia: natural retracement
Baidu Encyclopedia: maximum retracement