Gain/Loss Ratio

Remember when we talked about Drawdown?

>No!
We looked at the maximum stock price over the past umpteen years and compared it to the most recent price to see ...

>To see how much we would have lost. Yes, I remember now.
Well, that was a negative look at the past, so now we ...

>We take a positive look, right?
Yes. We now look at the minimum stock price over the past umpteen years and compare it to the most recent price to see ...

>To see how much we would have gained!
Stop interrupting!
If Max is the maximum and Min is the minimum price over the past umpteen years, and P is the current price, we look at:
 LOSS = 1 - P / Max and GAIN = P / Min - 1
For example, if the price dropped from a maximum of \$50 to the current price of \$30, then LOSS = 1- 30/50 = 0.4 or a loss of 40%.
If, over the same time period, the price increased from a minimum of \$20 to the current price of \$30, then GAIN = 30/20 - 1 = 0.5 or a gain of 50%.

>I'll take the gain!
Pay attention.
There's a spreadsheet that looks at the daily prices over a 5-year period. It looks like this: