![]() ![]() Past performance does not guarantee future returns. Investors should understand that his/her investment decision is based on personal investment needs and risk tolerance, and performance information available on here is one amongst many other things that should be considered while making an investment decision. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. The information provided in this article is for educational and informational purposes only. The views expressed in this article are those of the author and do not necessarily reflect the views of Smallcase Technologies Private Limited (STPL) or any of its associates. You may have a look at similar stats for all models below. As a result, Mi EverGreen’s max drawdown is significantly lower at 18.7% compared to a higher 38.2% on CNX 200 index. ![]() While it’s benchmark, the CNX 200 spent about 86.4% in drawdowns, Mi EverGreen witnessed only 59.1% in drawdowns. You may take Mi EverGreen for example : The strategy has a fixed 25% exposure to gold and this provides an additional cushion during times of weakness in markets. The % of days in drawdowns are far lesser in strategies compared to the metric on their respective benchmark indices. As you can see from the above charts, most strategies have been able to do well because of this phenomenon. Lesser the time you spend in drawdowns, better it is for downside outperformance. At WeekendInvesting, we look to outperform both on the up side as well as down side as you may have read earlier in this blog. You would already have a winning strategy even if you outperform only on the down side with effective exit rules and position sizing and generate similar returns when markets trend upside. This is nothing but 100 – % days hitting new highs. On the contrary, the last column (% days in drawdown) denotes the percentage of days when strategy / index has spent in drawdowns. % Days hitting new highs denotes the percentage of the total trading days when the strategy / index hit a new all time high including few when it may have stayed flat without dropping. The charts that are illustrated below showcase the results of this systematic rule based approach ![]() Hence, outperformance on downside as well as the upside helps the WeekendInvesting strategies create a massive alpha in the longer run.
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