ABSTRACT
Maximum DrawDown (MDD) measures maximal percentage decline in portfolio value in selected period. The period of decline of portfolio value can be selected by MDD. The time, when the portfolio value reaches the same level like before can be selected by MDD too. The value of MDD reflects the change in percentages for higher to lowest value of portfolio during selected period. It is the reason, why MDD value is always in percentages. MDD is the information about the success of selected strategy, about the risk of selected strategy and about the finance, which must be used by selected strategy. If the MDD value is about 40% and more, it indicates, that selected strategy is risky.
