Drawdown Algorithms

Lesson Overview

In "Quant Risk Framework" → "Drawdown Constraints", this lesson "Drawdown Algorithms" builds knowledge you can apply immediately.

Running max equity → current drawdown %. Implement reduce-at-10%, flat-at-20% in Python risk module.

Core Concepts

These points align with the video walkthrough—take notes as you watch.

• ▸Running max equity → current drawdown %.
• ▸Implement reduce-at-10%, flat-at-20% in Python risk module.

Practical Application

After studying, complete the companion practice lesson to move from understanding to doing.

• ▸Follow along in Jupyter or VS Code
• ▸Log how parameter changes affect backtest results
• ▸Submit a reproducible analysis notebook

FAQ

• ▸Q: How does this lesson fit the course? A: Part of "Drawdown Constraints"—follow the curriculum order.
• ▸Q: What do I need? A: Demo account and notes; quant lessons need a Python environment.
• ▸Q: How do I know I've mastered it? A: Pass the quiz and explain three key points of Drawdown Algorithms on your own.