# Max drawdown

**URL:** <https://forums.collective2.com/t/max-drawdown/4936>\
**Category:** C2\
**Created:** [January 6, 2007, 11:47am UTC](https://forums.collective2.com/t/max-drawdown/4936 "2007-01-06T11:47:23Z")\
**Posts on this page:** 3\
**Page:** 1

<div class="post-metadata">

**Author:** ![ColinBleeks](https://avatars.discourse-cdn.com/v4/letter/c/a87d85/32.png) [@ColinBleeks](https://forums.collective2.com/u/ColinBleeks)\
**Post date:** [January 6, 2007, 11:47am UTC](https://forums.collective2.com/t/max-drawdown/4936/1 "2007-01-06T11:47:23Z")

</div>

Hi matthew  
  
regarding the max drawdown on my system which is stated as  
  
39.11% from 20061120 to 20070105  
  
the drawdown was nowhere near this figure , is there a problem  
  
with this calculation?  
  
thanks  
  
colin

---

<div class="post-metadata">

**Author:** ![MatthewKlein](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/matthewklein/32/21382_2.png) [@MatthewKlein](https://forums.collective2.com/u/MatthewKlein)\
**Post date:** [January 6, 2007, 12:23pm UTC](https://forums.collective2.com/t/max-drawdown/4936/2 "2007-01-06T12:23:36Z")

</div>

Just a quick glance at your equity chart shows a peak of $190,000 equity… and then a subsequent low of approximately $115,000. That’s a drawdown of $75,000. Which, from the peak of $190K, equals about 39% - just as C2 claims.  
  
  
  
Why do you believe this is an error?

---

<div class="post-metadata">

**Author:** ![ColinBleeks](https://avatars.discourse-cdn.com/v4/letter/c/a87d85/32.png) [@ColinBleeks](https://forums.collective2.com/u/ColinBleeks)\
**Post date:** [January 7, 2007, 7:02am UTC](https://forums.collective2.com/t/max-drawdown/4936/3 "2007-01-07T07:02:09Z")

</div>

hi matthew  
  
i thought max drawdown was a calculation of maximum drawdown  
  
of open positions at any given time.  
  
however i understand what you are saying thanks for the clarification.  
  
best regards  
  
colin