BacktestFolio · Glossary
Recovery Time
In plain language
After the 2008 crash, many equity portfolios took years to recover their previous value. Knowing how long it takes to get back to the starting point is fundamental for understanding the real risk relative to your time horizon.
Technical definition
Number of days, months or years needed for the portfolio to return to its previous peak after the maximum drawdown. Measures the duration of the loss period, not just its magnitude.