Drawdown
The Drawdown tool calculates three measures from a user-defined high that can be displayed below the chart. By default, all values are calculated over one year, but the lookback periods can be adjusted.
- Drawdown - current percentage from the high
- Average - average drawdown
- Maximum Drawdown - highest drawdown
In this example, TSLA is currently 31% below its 52 week high, and over the last year the average drawdown has been 17%, with a maximum of 63%.
Scripting Function: DDP()
To show the average 6 month drawdown in a watchlist: DDP(DEFAULT=Average, BACKTYPE=Months, LOOKBACKBARS=6)
Actions & Properties
Actions
Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Drawdown tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Drawdown tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Drawdown tool to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Look Back Type: Choose the timeframe of the lookback period, eg Months, Years.
Look Back Amount: Select the amount of periods to look back, eg 1 Year, 6 Months.
Drawdown Style: Expands to display the plot style properties of the drawdown plot, such as shading colour, and transparency.
Average Line Style: Expands to display the plot style properties of the average plot, such as colour, width, and transparency.
Max Line Style: Expands to display the plot style properties of the maximum plot, such as colour, width, and transparency.
Offset: Moves the tool forward or backwards in time. The offset is measured in bars, so a value of 2 will push the tool forward 2 bars and -2 will move the tool back 2 bars.
Tool Transparency:** Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
Show in Price Scale: When selected, the current Drawdown values will be displayed in the Price Scale.
Lock Tool: When selected, any changes to the tool will be prevented from being made.