RoMaD / Calmar Ratio

Also known as: return over max drawdown, calmar ratio

RoMaD (Return over Maximum Drawdown), close cousin of the Calmar ratio, divides annual return (CAGR) by the worst drawdown — return earned per unit of worst-case pain. It measures risk by what actually makes people quit (the drawdown), not abstract volatility, exposing “high returns” that only came with unbearable falls.