Tools · Risk

Drawdown Recovery

The math behind getting back to breakeven — and why losses are harder to recover than they look.

--%
Recovery needed
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Equity left

How professionals use this

  • Answers: what recovery % is required after a drawdown, and what equal-run recovery could look like.
  • Does not answer: when the recovery will happen or which ticker will lead it.
  • Use it to: set max drawdown rules and avoid unrealistic "I'll just make it back" thinking.
  • Common mistake: assuming a 50% drawdown needs a 50% gain — it needs 100%.
Low drawdown — stay disciplined and avoid over-sizing.
30.0%
Drawdown
Equity left
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One-shot recovery
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Max sensible risk
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Equal-run recovery targets
RunsPer-run gain needed
How the math works
  • If you lose X%, your equity is multiplied by (1 − X/100). To return to 1.0 you need to gain 1/(1−X/100) − 1.
  • Equal-run recovery: solve (1+g)^n = 1/(1−X/100) for g, where n is the number of winning runs.
  • This is pure arithmetic — it doesn't account for time, slippage, or the difficulty of stringing wins together under pressure.
Educational use only. These calculations are mathematical illustrations only and do not constitute financial advice or a recovery plan.