Drawdown Recovery

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

Drawdowns aren't symmetric — 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 ÷ (1 − drawdown). Losses compound against you — which is why the 2% rule exists.
Gain required to break evenafter −25%
Months to recover
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 — so +25% doesn't get you home. You need +33%.−50% needs +100%. −80% needs +400%.

The 2% rule connection

Risking 2% per trade, even 10 straight losses leaves you with ~82% of your account — 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 — see how the full risk framework works inside Apprentice of Gains.

Educational content only — 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.