BacktestFolio · Glossary
LTWR
In plain language
If SWR is the maximum you can withdraw without depleting capital, and PWR is the maximum that preserves it intact, LTWR is the middle ground: a balanced objective between sustainability and long-term wealth protection.
Technical definition
Long-Term Withdrawal Rate: arithmetic mean of SWR and PWR at the longest horizon available in the sample (or at the reference percentile in the Monte Carlo simulation). Represents a withdrawal rate midway between mere capital survival (SWR) and full capital preservation (PWR).