I was in a dead end job and always struggling financially. The book was 'Getting it together.' It became my bible for the next few years and I went on to read other great books of yours. One day he came home with a book and said that an author had been offering it to the workers. I was staying with him and travelling around for three months. In 1999 I came over from England and visited my brother who went to live in Australia. I just wanted to say thank you for changing my life. He is a Certified Financial Planner, a member the Australian Securities and Investment Commission Liaison committee, and is currently an Adjunct Professor and Executive in Residence with the Faculty of Business at the Queensland University of Technology. Noel is a Fellow of CPA Australia, a Fellow of the Taxation Institute, a Fellow of the Australian Institute of Management In 2003, he was awarded the Australian Centenary Medal in recognition of his services to the financial services industry and, in 2011 he was made a Member of the Order of Australia in the Australia Day Honours List. In 1988, Noel was named Australian Investment Planner of the Year. His book “Making Money Made Simple” set sales records across the country and was recently named in the top 100 of the most influential books of the last century. He has written 20 bestselling books that have sold over two million copies around the world. You’ll hear Noel on Fairfax radio and see him on Channel 10. He also writes in Australian Doctor magazine. Not only does he write weekly columns in the Sunday Mail and the Courier Mail, but, by some strange magic, he has the entire Australian continent covered from the Cairns Post in the North to the Hobart Mercury in the South, to the Perth Sunday Times in the West. We use maximum drawdown as one of the key statistics for evaluating our quantitative investment strategies and for deciding on the introduction of new variables in our models.Noel Whittaker is Australia’s Financial Wizard of Oz. Most investors would strongly prefer the first strategy, because it has a much lower maximum drawdown than the second strategy! Furthermore, the length of the drawdown period is shorter. However, the maximum drawdown can also be calculated based on returns relative to a benchmark index, for identifying strategies that show steady outperformance over time.įor example: two strategies can have the same average outperformance, tracking error, information ratio and volatility, but their maximum drawdowns compared to the benchmark can be very different.įor instance, suppose that the first one achieves a monthly performance of 1%, -0.5%, 1%, -0.5% and so on versus the benchmark, while the second strategy achieve an outperformance of 1% each month during the first half of the sample, but an underperformance of 0.5% each month during the second half of the sample. The maximum drawdown can be calculated based on absolute returns, in order to identify strategies that suffer less during market downturns, such as low-volatility strategies. It is usually quoted as a percentage of the peak value. Maximum drawdown is defined as the peak-to-trough decline of an investment during a specific period.
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