Understanding Return/Drawdown Ratio
When evaluating stocks, one of the most important questions is: "How much return am I getting for the risk I'm taking?"
The Return/Drawdown Ratio answers this by measuring reward per unit of recent downside risk, helping you find stocks with strong performance and controlled pullbacks.
What This View Shows
The Return/Drawdown view provides rolling performance and risk metrics for each stock over your selected time period.
Key Features:
- Multiple time periods: 1w, 2w, 4w, 8w, 13w, 26w, or 52w rolling windows
- Risk metrics: Max Drawdown and Current Drawdown
- Performance metrics: Returns and R/D Ratio
- Sortable columns: Find leaders by any metric
- Symbol search: Quick navigation to specific stocks
Understanding Each Column
Returns (%)
Price change from the first close in the window to the latest close
((latest_close − first_close) / first_close) × 100Max Drawdown (%)
Biggest peak-to-trough drop that occurred anywhere inside the window
((peak_high − trough_low) / peak_high) × 100Current Drawdown (%)
How far today's close is below the window's peak
((peak_high − latest_close) / peak_high) × 100R/D Ratio
Reward per unit of recent downside risk
Returns ÷ Max DrawdownNote: If Max Drawdown is 0 (no pullback occurred), the R/D Ratio is undefined and displays as "—"
Available Time Periods
Each period serves different trading styles and analysis needs:
| Period | Window | Best For |
|---|---|---|
| 1 Week | 7 calendar days | Ultra short-term momentum, day trading signals |
| 2 Weeks | 14 calendar days | Short-term trends, swing trading opportunities |
| 4 Weeks | 28 calendar days (~1 month) | Monthly performance, sector rotation |
| 8 Weeks | 56 calendar days (~2 months) | Medium-term trends, earnings cycles |
| 13 Weeks | 91 calendar days (~1 quarter) | Quarterly performance, institutional rebalancing |
| 26 Weeks | 182 calendar days (~6 months) | Half-year trends, major momentum shifts |
| 52 Weeks | 364 calendar days (~1 year) | Annual performance, long-term strength |
Quick Reads and Patterns
Learn to spot these key patterns for better trading decisions:
High Returns + Small Current Drawdown
Momentum continuationStrong trend with price near highs
High Returns + Large Current Drawdown
Possible buying opportunity on dipStrong trend but currently pulled back
Negative Returns + Big Drawdown
Avoid or short candidateWeak momentum with higher downside risk
High R/D Ratio
Quality momentum playGood returns with controlled risk
How to Use This Tool Effectively
Choose Your Time Frame
Select a period that matches your trading style. Short-term traders might focus on 1-4 week windows, while position traders prefer 13-52 weeks.
Sort by Your Priority
Sort by Returns to find recent strength, or by R/D Ratio to find strength with smaller pullbacks.
Combine Filters
Filter for positive Returns, then sort by lowest Current Drawdown to find strong stocks near support.
Compare Periods
Check multiple time frames to confirm trends. A stock strong across 4w, 13w, and 26w shows consistent momentum.
💡 Pro Tips
For Swing Trading: Focus on 2-4 week windows with R/D Ratio > 2.0
Finding Dips: Look for positive Returns with Current Drawdown > 5% for pullback opportunities
Risk Management: Prefer stocks where Max Drawdown < 10% in your chosen period
Industry Scanning: Compare R/D Ratios within sectors to find relative leaders
Behind the Scenes
- • We use adjusted prices (adjusted high/low/close) to account for splits and dividends
- • Windows are rolling over calendar days (weeks × 7), using trading days within that span
- • All values are rounded to two decimals for clarity
- • Data gaps (holidays/missing bars) simply reduce observations within a window
Key Takeaways
- ✓ The R/D Ratio measures reward per unit of recent downside risk
- ✓ Higher R/D Ratios indicate better risk-adjusted performance
- ✓ Current Drawdown helps identify pullback opportunities in strong trends
- ✓ Combine multiple time frames for comprehensive momentum analysis
⚠️ Disclaimer: This is a screening tool, not investment advice. Always consider trend, volume, fundamentals, and your risk tolerance alongside these metrics.