Risk Management
Drawdown Recovery Calculator
A drawdown recovery calculator shows the percentage gain required to break even after a loss and can simulate how long recovery takes at your win rate. Traders use it to understand asymmetric recovery math — a 50% loss requires a 100% gain on remaining capital, not a 50% gain.
See gain required to recover, run 500 simulated paths with your win rate and avg win/loss, and understand why deep drawdowns are hard to escape.
Frequently asked questions
How much gain do I need to recover from a 50% drawdown?
A 50% loss leaves half your capital. You need a 100% gain on the remaining balance to return to your starting equity — not a 50% gain.
Why is recovery harder after a large trading loss?
Losses and gains are asymmetric on account equity. After a 50% drawdown you have half your capital, so you must double it (100% gain) just to reach breakeven.
How long does it take to recover from a drawdown?
Recovery time depends on drawdown depth, win rate, and average win versus average loss. Enter those stats to see median recovery time across 500 randomized trade paths.
What is blowout risk in drawdown recovery?
Blowout risk is the share of simulated paths that fail to recover before hitting drawdown limits or a time cap. High blowout risk means recovery is unlikely without changing risk or strategy.
Plan with math. Validate with your journal.
Use this calculator to plan your trade, then log the result in TraderSetup to see if your execution matches the math — win rate, expectancy, drawdowns, and equity curve included.