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Answer No 16
Answer No 16
As an investment advisor, I would like to inform you that investing solely based on a
single parameter such as Maximum Drawdown may not be a comprehensive
approach to investment decision-making.
Here are some points to consider:
Risk tolerance: It's crucial to understand your own risk tolerance, which is your
ability and willingness to bear the ups and downs of the market. A Maximum
Drawdown of 66.13% in Strategy A may be too high for some investors, while
others may be comfortable with such risk. It's essential to align your investment
decisions with your risk tolerance.
Investment goals: Your investment goals should also be taken into account. If
your goal is long-term wealth preservation or capital appreciation, you may
need to consider a more diversified investment approach that balances risk and
return potential.