On this pags is a Litecoin Drawdown Calculator. This tool helps show the potential downside risks associated with a Litecoin investment by either calculating the maximum drawdown and drawdown periods within a selected timeframe and graphing past performance and drawdowns, or displaying a drawdown period table with summary stats.
Using the Litecoin drawdown calculator
To effectively use this tool to analyze drawdowns in a Litecoin investment, follow these steps:
- Starting Date: Enter the date to start analyzing drawdowns.
- Ending Date: Enter the date to end the drawdown analysis.
- Calculate: Click the Calculate button to view the maximum drawdown (and specific drawdown periods). It also will show a graph of Litecoin's price performance and drawdowns.
- Show Drawdowns: Click the Show Drawdowns button to display a detailed table of all significant – 30 day or more – LTC drawdown periods.
Each row will include Litecoin's peak and trough value and date during the period, the percentage drawdown between the two, and the annualized daily volatility during that drawdown period. It only shows drawdowns of 30 or more days.
Understanding drawdowns is important. They measure the drop from peak to bottom in the value of a portfolio, providing an insight into potential risk and volatility of Litecoin investments.
Special features
The Litecoin Drawdown Calculator offers a few awesome features you likely won't find elsewhere:
- Maximum Drawdown: Calculates the largest percentage drop in investment value over the specified period, and the corresponding peak and trough. Use the Calculate button.
- Drawdown Periods: The tool identifies periods where 30+ day drawdowns occurred, helping you understand the volatility, duration, and severity of investment declines. Use the Show Drawdowns button.
- Volatility: Computes the annualized volatility based on daily log Litecoin returns during the drawdown periods in the table rows.
- Interactive Graphs: Visualize drawdown dynamics with interactive charts that highlight drawdowns from the previous high at a date, along with Litecoin value.
Methodology and data sources
The calculator uses historical price data for Litecoin from CoinGecko with additional historical data from CryptoCompare.
When you're bored of this tool, I also built a Litecoin Investment Calculator, a Litecoin Daily Moving Average Analyzer, a Litecoin to USD tool, and USD to Litecoin calculator.
Disclaimer
While we strive to provide accurate and up-to-date information, the results from this calculator are for informational purposes only and should not be considered financial advice. Past performance is not a guarantee of future returns. Always conduct your own research and consult with a financial advisor before making investment decisions.
We hope this tool aids you in making informed decisions about Litecoin investments. For more financial tools, check out our Investing category page.
