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Return Max Draw


In respect to a managed futures fund, it is ratio that relates the rate of return to the maximum loss:

Return/ max draw = rate of return ÷ maximum loss

Investors use this ratio as a tool of measuring the performance of a commodity trading advisor (CTA) against that of other CTAs. The higher the return/max draw, the better a given CTA’s performance is.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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