Reading a drawdown without rewriting the story
Peak-to-trough numbers only help when you keep the path, the cash line, and your own constraints in the same frame.
A drawdown is not a single percentage. It is a path: how far the book fell, how long it stayed down, and whether you were forced to sell along the way.
When we reconstruct a client’s peak-to-trough, we keep three columns in view — market marks, cash balance, and known obligations. A 22% equity decline looks different if the cash line held versus if school fees or a property deposit drained it mid-way.
Keep the calendar
Mark the dates of large contributions and withdrawals. Otherwise the chart blames the market for decisions you made for good reasons.
Separate correlation from coincidence
Two holdings can fall together once without being the same risk. Look across more than one stress window before you call them twins.
Write the constraint first
Income needs and currency preference belong at the top of the page. Drawdown math without constraints becomes a debate about taste.
If you want a structured reading of your own path, consider a portfolio risk review.