Risk Analysis

Drawdown Recovery

Understand the true cost of losses. Calculate how much profit you need to earn just to get back to where you started. Math doesn't lie — losses hurt.

The Recovery Asymmetry

Losses have an asymmetric impact on your account. If you lose 50% of your account, you don't need 50% profit to recover — you need 100%.

The deeper the drawdown, the harder it is to recover. This is why preserving capital is the most important rule in professional trading.

Loss Recovery Needed
10% 11.1%
25% 33.3%
50% 100%
90% 900%

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