Formula: Drawdown = (1 - Valley VAMI / Peak VAMI) (X 100 for %)
Example: Peak VAMI = 2000, Valley VAMI = 1500
Drawdown = 1 - 1500/2000 = .25 or 25%
Note: A drawdown is the Peak-to-Valley rate of return and is actually the negative, since in a drawdown the ROR is by definition negative.