The Ulcer Index is used as a risk indicator developed by Peter Martin and Byron McCann. Its name originated from a joke between the two founders that people invested in mutual funds with a high Ulcer Index rating, the more likely hood they would be unable to sleep at night and have Ulcers. Many indicators focus on standard deviation to determine market risk. The Ulcer index looks at how far prices retrace from highs. This is a good indicator to look at as the investor can get an idea of what the downward risk will look like from investment tops and peaks