Definition
The maximum percentage decline in the position's unrealized P&L from its peak. Aggregates the stock holding plus all option spreads on that underlying. Returns 0 at a new high water mark; rises as P&L falls below the peak.
Parameters
Asset
Output range: >= 0 (percentage points of P&L)
Example condition
`Position Max Drawdown(NVDA) > 25` (Stop-loss: exit when the NVDA position has given back 25% of its peak P&L)Use in a strategy
Add this indicator to a strategy condition, choose its supported parameters and compare the output with the threshold required by your rule. Preserve the same interval and lookback when comparing backtests.
After saving the condition, inspect its asset, interval, lookback and comparison operator against the parameters above. If no trades occur, check whether the condition ever became true and whether the requested input data exists for that period. A missing input is not a zero-valued signal. An indicator produces an input to a rule. It does not establish future returns, and data availability can differ across assets and periods.