The Drawdown Recovery Calculator shows how much your account needs to gain to get back to breakeven after a loss. A 50% loss requires a 100% gain to recover — this asymmetry is why capital preservation matters so much.
Frequently Asked Questions
Why does a 50% loss require a 100% gain to recover?
Because the base is smaller after the loss. If you have $100 and lose 50% you have $50. To get back to $100 from $50 requires a 100% gain.
What is a typical maximum drawdown for traders?
Prop firms typically allow 5–10% max drawdown. Professional hedge funds aim to keep drawdowns under 20%. As a rule, keep your max drawdown to a level you can psychologically recover from.
How can I reduce drawdown?
Smaller position sizes, strict stop losses, not trading during high-impact news events, and having clear daily/weekly loss limits all help control drawdown.