Drawdown Recovery

Lose 50%, and you need +100% back.

Drawdowns aren't symmetric โ€” the deeper the hole, the disproportionately harder the climb out. Drag the slider and see why protecting capital is the whole game.

Your Inputs

1%95%
0.5%10%
The asymmetry: required gain = drawdown รท (1 โˆ’ drawdown). Losses compound against you โ€” which is why the 2% rule exists.
Gain required to break evenafter โˆ’25%
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Months to recover
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On a $10K account

Why this math matters

Drawdown

The % drop from your account's peak to its low. A $10,000 account that falls to $7,500 is in a 25% drawdown.

Why recovery is harder

After losing 25%, you're growing a smaller base โ€” so +25% doesn't get you home. You need +33%.โˆ’50% needs +100%. โˆ’80% needs +400%.

The 2% rule connection

Risking 2% per trade, even 10 straight losses leaves you with ~82% of your account โ€” a recoverable hole instead of a career-ending one.

Months to recover

How long the climb takes at a steady monthly gain, with compounding. Deep drawdowns cost you time, not just money.

Want the system behind the numbers?

Capital protection is the heart of Lesson 7 โ€” see how the full risk framework works inside Apprentice of Gains.

Educational content only โ€” not financial advice. Trading involves substantial risk of loss and is not suitable for every investor. Figures shown are illustrative models, not predictions or guarantees. © 2026 School of Gains.