What a drawdown is, how Anacleto extends it back with your ETFs' own history, and how to read the warning and red thresholds.
A drawdown is how far a portfolio has fallen from its highest value so far. A portfolio that went from €100,000 to €80,000 and is now at €90,000 has a current drawdown of 10% and a maximum drawdown of 20%.
A new portfolio has little history of its own. On the risk page Anacleto extends it back: today's weights applied to your ETFs' own price history, rebalanced monthly, as far back as all your ETFs exist, sometimes using older listings of the same fund converted to euro. From your first purchase onwards the line is your real portfolio.
You set the maximum fall you are prepared to tolerate. The page also marks a warning at −25% and a red threshold at −35%, shared by everyone, so you can see how close past falls came to them.
The extended history uses dividend-adjusted closes, weekly or monthly for the older part, so short dips are partly smoothed. It ignores costs and taxes. It is an indication of risk, not a forecast of the next fall.