MDD stands for Maximum DrawDown and means the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period. (Source: Investopedia)

It is an absolute value (so can be written in either plus or minus).

You can find more detail here.

Why does MDD matter?

When you invest, how well you can "defend" your asset is as important as or even more important than how well you can earn profit.

MDD is an indicator of how much you could have lost by investing in a certain investment plan in the past.

Let's say you invested in a volatile crypto asset and may have gotten you a 100% return but if the MDD is 50%, then you have to endure the 50% loss in your asset during your investment period, which is psychologically painful to endure.

What is HEYBIT's MDD?

For almost a year, HEYBIT has recorded 11.25% in MDD. It helps you invest without much stress because it does all the trading for you while having never recorded more than 11.25% loss.

So if you want to get rid of stress from daily crypto trading, maybe it's time for you to consider hopping on ForeFront!

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