--- title: "Drawdown shape | RupeeCase Terminal" description: "Beyond max drawdown: current drawdown, the deepest five falls, time under water, ulcer and pain index, worst 4 weeks and falls deeper than 10 percent." source_url: "https://www.rupeecase.com/learn/terminal/how-the-falls-looked" --- ## Watch: Drawdown shape The Risk tab draws every fall from the running high.Drawdown shape: what do ulcer, pain and time under water add? 5 chapters, 1:22, with voice and music 1. [Chapter 1Where it is0:09](/instiv2/media/tut4/how-the-falls-looked-where-phone-dark-v4-va2.mp4) 2. [Chapter 2What it means0:33](/instiv2/media/tut4/how-the-falls-looked-meaning-phone-dark-v4-va2.mp4) 3. [Chapter 3Worked example0:06](/instiv2/media/tut4/how-the-falls-looked-example-phone-dark-v4-va2.mp4) 4. [Chapter 4How to read it0:24](/instiv2/media/tut4/how-the-falls-looked-reading-phone-dark-v4-va2.mp4) 5. [Chapter 5Watch out0:10](/instiv2/media/tut4/how-the-falls-looked-watch-phone-dark-v4-va2.mp4) Screens from the RupeeCase app on sample data. Strategy figures are model, back tested, as of the date on screen. Formula and example numbers are illustrative. Mark as watched 7In this screen ## Every button the video points at. A still from each chapter with its buttons and fields numbered. Pick a number to zoom in on it; hover the still for a close up; Esc shows the whole screen again. Sample data, no order is placed. **1**Where it is**2**What it means**4**How to read it ### Chapter 1: Where it is 1 Show the whole screen 1 Show the whole screen 1. 1**Every fall**The Risk tab draws every fall from the running high. Shown in the video, not on this still ### Chapter 2: What it means 1234 Show the whole screen 1234 Show the whole screen 1. 1**Now**Current drawdown: how far the latest value sits under its high. Shown in the video, not on this still 2. 2**Share below a high**Time under water: the share of periods below an earlier high. Shown in the video, not on this still 3. 3**Deep and long**Ulcer index: the root of the mean squared drawdown. Shown in the video, not on this still 4. 4**Average fall**Pain index: the average drawdown. Shown in the video, not on this still ### Chapter 4: How to read it 1 Show the whole screen 12 Show the whole screen 1. 1**Deepest 5**Deepest 5 lists the five deepest falls and their recovery. Shown in the video, not on this still 2. 2**The longest fall**Longest time under water is the longest fall, not the deepest. Shown in the video, not on this still ## Where it is ScreenRisk tab, Drawdowns and Risk figuresAdvanced The Risk tab: the Drawdowns card (Over time; Deepest 5 in Advanced) and the Risk figures card. Current drawdown and Max drawdown length show in Basic; the others in Advanced. Index in this video: [Allcap](/strategies/allcap) (strategy page). ## What it means Max drawdown gives the deepest fall; these figures give the shape of the falls. Current drawdown is how far the latest value sits under its high. Time under water is the share of weeks spent below an earlier high, and Longest time under water the longest such stretch. The ulcer index squares every week's drawdown, averages the squares and takes the root, so long, deep falls weigh most; the pain index is the plain average drawdown. Worst 4 weeks is the weakest return over any four weeks, and Drawdowns deeper than 10% counts the falls past 10 percent. ## The formula Every figure starts from the drawdown each week: the value over the highest value so far, minus one. As computed in the RupeeCase app`Drawdown = value / running high - 1 (0 at a new high) Current drawdown = the latest drawdown Time under water = weeks below 0 / all weeks Ulcer index = square root of the mean of (100 x drawdown) squared Pain index = mean size of the drawdown Worst 4 weeks = lowest of value / value 4 weeks earlier - 1 Max drawdown length: the deepest fall's weeks; Longest time under water: the longest fall's` ## Worked example Example only * Drawdowns over 4 weeks: 0%, -10%, -20%, 0% * Pain index = (0 + 10 + 20 + 0) / 4 = 7.5% * Ulcer index = square root of (0 + 100 + 400 + 0) / 4 = 11.2 ## How to read it * Ulcer well above pain: some falls were deep, not only long. * Time under water near 50%: about half the weeks sat below an earlier high. * Deepest 5 gives each fall's peak, trough and weeks to recover. ## Watch out * Max drawdown length is the deepest fall's length; the longest is Longest time under water. * This recording reads month end history, so Worst 4 weeks is one month here. * On a portfolio these cards are the model since you invested. ## Transcript Tap Sound on for voice and music. These are the captions of the video, chapter by chapter. 1. 0:00**Where it is.** The Risk tab draws every fall from the running high. 2. 0:09**What it means.** Current drawdown: how far the latest value sits under its high. 3. 0:42**Worked example.** Worked example, example only: Drawdowns over 4 weeks: 0%, -10%, -20%, 0%. Pain index = (0 + 10 + 20 + 0) / 4 = 7.5%. Ulcer index = square root of (0 + 100 + 400 + 0) / 4 = 11.2. 4. 0:48**How to read it.** Deepest 5 lists the five deepest falls and their recovery. 5. 1:12**Watch out.** Watch out: Max drawdown length is the deepest fall's length; the longest is Longest time under water. This recording reads month end history, so Worst 4 weeks is one month here. On a portfolio these cards are the model since you invested. ## Terms in this tutorial * [Ulcer index](/learn/glossary#ulcer-index)One number for how deep and how long the falls below the high were. * [Pain index](/learn/glossary#pain-index)The average distance below the running high, over every week. * [Time under water](/learn/glossary#time-under-water)Time spent below a previous high, waiting to recover. * [Current drawdown](/learn/glossary#current-drawdown)How far the value is right now below its highest point so far. * [Drawdowns deeper than 10%](/learn/glossary#drawdowns-deeper-than-10)A count of the separate falls of more than 10 percent from a high, each counted once from its peak until it recovered. * [Worst 4 weeks](/learn/glossary#worst-4-weeks)The biggest loss over any 4 weeks in a row in the history. * [drawdown](/learn/glossary#drawdown)The peak-to-trough decline during a specific period. ## Learn it in depth * [Module 2.3: Risk Metrics That Matter8 min read, free](/learn/path-2/module-2-3-risk-metrics-that-matter) * [Module 4.5: Risk Management for Systematic Portfolios9 min read, free](/learn/path-4/module-4-5-risk-management) TKeep watching ## Next tutorial. [0:59Next tutorial, Read a strategyCharges by kind: what are brokerage, STT, GST and the platform fee?The kinds of charge behind a strategy's estimated costs: brokerage, securities transaction tax, GST, exchange charges, SEBI fee, stamp duty and platform fee.Watch next](/learn/terminal/cost-per-year-by-kind) ### Related tutorials * [0:56Read a strategy, BasicMax drawdown: how bad did it get?0:56 video, BasicWatched](/learn/terminal/max-drawdown) * [1:04Make it yours and Advanced, AdvancedReturn distribution: what do skew and kurtosis say?1:04 video, AdvancedWatched](/learn/terminal/shape-of-weekly-returns) * [1:21Make it yours and Advanced, AdvancedAdvanced risk figures: Sortino, Calmar, VaR, beta and more1:21 video, AdvancedWatched](/learn/terminal/advanced-risk-figures) [All 67 terminal tutorials](/learn/terminal/) Try it in Practice ## See it on your own screen. Practice mode runs the whole terminal without real orders, so you can open any strategy and find every screen from this tutorial for yourself. [Sign up for RupeeCase](https://invest.rupeecase.com/signup)[Glossary](/learn/glossary) Explore next ## Keep learning the terminal. * [TopicDrawdown: what it measures and how to read itA reading list: guides, modules, tools and questions](/topics/drawdown/) * [TutorialGrowth per year: how fast did the model grow?1:06 video, Basic](/learn/terminal/growth-per-year) * [TutorialThe riskometer: what sets Low to Very High?0:45 video, Basic](/learn/terminal/riskometer) * [TutorialMinimum investment: why does each strategy have one?0:51 video, Basic](/learn/terminal/minimum-investment) * [TutorialRebalance cadence: how often does the strategy trade?0:56 video, Basic](/learn/terminal/rebalance-cadence) * [TutorialRs 10,00,000 became: what do the hero figure and periods show?1:08 video, Basic](/learn/terminal/hero-figure-and-periods) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera Education only, not investment advice. Screens are recordings of the RupeeCase app on sample data. Strategy figures are model, back tested and after estimated charges, as of the date on screen; they are not client returns and not a promise of future returns. Formula and worked example numbers are illustrative. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a mutual fund, a PMS, an AIF or a SEBI registered investment adviser. Trades execute through your own SEBI registered broker and the shares sit in your own demat. Investments in securities markets are subject to market risks.