Drawdown recovery calculator.
See the gain you need to climb back from a drawdown. It is not symmetric: a 50% loss needs a 100% gain to break even. Enter a drawdown and watch where it lands on the curve.
ZENKEI
ZENKEI
See the gain you need to climb back from a drawdown. It is not symmetric: a 50% loss needs a 100% gain to break even. Enter a drawdown and watch where it lands on the curve.
The gain is calculated on the smaller balance left after the loss, which is why deep drawdowns need disproportionate recoveries.
Losing 20% and then gaining 20% does not get you back to where you started. The loss is taken on the full account, but the recovery is calculated on the smaller balance that is left, so it always takes a bigger percentage gain to climb back. The deeper the hole, the steeper the climb.
Where d is the drawdown as a decimal. At 20% the recovery is 0.2 / 0.8 = 25%. At 50% it is 0.5 / 0.5 = 100%. At 75% it is 0.75 / 0.25 = 300%.
This is why professionals obsess over keeping drawdowns shallow. The curve is gentle up to about 20%, then bends sharply. Staying on the flat part is mostly a matter of position sizing and risk control.
Small, fixed risk per trade and hard loss limits are what keep drawdowns survivable, and they are standard logic in a well-built Expert Advisor. We develop custom EAs with risk management built in. Size each trade first with the position size calculator.
This calculator is provided for educational purposes only and is not financial or investment advice. Trading involves risk of loss.
The gain needed equals the drawdown divided by one minus the drawdown, as a percentage. For a drawdown d written as a decimal, recovery gain = d / (1 - d). A 20 percent drawdown needs a 25 percent gain, and a 50 percent drawdown needs a 100 percent gain.
Because the gain is calculated on the smaller balance that is left. A 50 percent loss halves the account, so you then need to double what remains, a 100 percent gain, just to get back to even. The deeper the drawdown, the more disproportionate the recovery.
A drawdown is the drop from a peak in account equity to the following low, usually stated as a percentage. It measures how much the account has fallen from its high-water mark, and it is one of the main ways to judge the risk of a strategy.
It depends on the trader and the strategy, but many treat drawdowns beyond 20 to 30 percent as a serious warning, because the required recovery grows quickly past that point. Keeping drawdowns shallow is largely a matter of position sizing and risk control.
Mainly by risking a small, fixed percentage per trade, capping total exposure, and stopping trading rules when losses reach a limit. These controls are standard logic in a well-built Expert Advisor, which ZenkeiX develops with risk management built in.
We build Expert Advisors that cap risk and keep drawdowns survivable, source code included.