ndicator Overview

The Portfolio ATH Drawdown indicator measures the historical percentage decline of a multi-asset portfolio from its All-Time High (ATH) water mark. Unlike a single-asset drawdown tool, this indicator calculates the aggregate value of a custom basket of up to 10 assets, including both cryptos (e.g. BTC, ETH) and traditional stocks (e.g. NVDA, TSLA).

It identifies the maximum peak achieved by the combined portfolio and tracks the subsequent "underwater" distance in real-time, allowing you to visualise the maximum pain your portfolio would have to endure. The colour gradient, ranging from bright green (minor pullback) to deep red (significant capitulation), provides an immediate visual heat map of portfolio risk and historical volatility.

How To Use

This tool is used to stress-test your asset allocations and understand the psychological endurance required to hold a specific portfolio through diverse market cycles.

• Creating a Portfolio: By default, the tool operates in Portfolio Mode. Enter your desired crypto or stock tickers (e.g., BTC, ETH, NVDA, TSLA) and assign their percentage weights. The calculator automatically adjusts the historical start date to the earliest point where all selected assets existed simultaneously.

• Balancing Allocations: Use the dropdowns to ensure your total portfolio weight equals exactly 100%. If unbalanced, a red warning will guide you on the necessary correction before the "Update" button will execute the calculation.

• Historical Depth: The indicator can pull data as far back as 1980, allowing you to see how modern tech portfolios would have performed during historical events like the Dot-com bubble, the 2008 Financial Crisis, or Bitcoin's various -80% corrections.

• The Drawdown Gradient:

1. Green Zones (0% to -20%): Standard market "breathers" or pullbacks. In a healthy bull market, the portfolio spends most of its time oscillating in this upper zone.

2. Yellow/Orange Zones (-20% to -50%): Significant corrections. These areas test investor conviction and often represent "reloading" opportunities in a long-term uptrend.

3. Red Zones (-50% to -90%+): Extreme capitulation events. These represent generational bottoms where most investors exit the market, but where long-term wealth is statistically most likely to be generated.