Drawdown Simulator (Monte Carlo)

Drawdown Simulator (2026) — Max Drawdown + Monte Carlo Risk | AlphaTechFinance

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Drawdown Simulator (Monte Carlo)

Simulate portfolio risk with thousands of paths and measure max drawdown (peak-to-trough loss). Includes monthly contributions, fees (TER), and optional inflation adjustment.

Educational tool only. Not financial, tax, or legal advice.

Median ending value

Ending value range (10th–90th)

Median max drawdown

Probability max drawdown ≤ −X%

Prob. ≤ −20% / −30% / −50%

Assumed net return (mu − fee)

Portfolio paths (10th / 50th / 90th by ending value)

Solid = median • Dashed = 10th • Dotted = 90th

FAQ

What is max drawdown?

Max drawdown is the largest peak-to-trough decline during the period. It’s a practical “how bad could it get” risk metric.

Is Monte Carlo accurate?

It’s a scenario engine, not a guarantee. Real markets have fat tails and regime shifts. Use it to stress-test decisions, not to predict the future.

What does volatility mean here?

Volatility is the annualized standard deviation of returns. Higher volatility increases drawdown risk even if average return is the same.

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