# Drawdown: measuring the fall from the peak

> What a drawdown is, how Anacleto extends it back with your ETFs' own history, and how to read the warning and red thresholds.

Updated 2026-10-17 · https://anacleto-zb7h.onrender.com/guides/drawdown

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%.

## Before and after your first purchase

A new portfolio has little history of its own. On the [risk page](https://anacleto-zb7h.onrender.com/risk) 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.

## Thresholds

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.

## Limits

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.