Drawdown Recovery Calculator
Enter a drawdown depth and see exactly how much gain is required to break even. The math is dd / (1 - dd) - linear under 25%, accelerating sharply past 40%, exploding past 60%. Risk policy caps exist precisely because the recovery math becomes unrecoverable past certain levels.
Read the lesson: Drawdown Math and RecoveryDrawdown Recovery Calculator
The asymmetry that kills accounts: a 20% drawdown takes 25% to recover; a 50% drawdown takes 100%. Visualised.
The recovery curve is gain = dd / (1 - dd). It's linear under 25%, accelerates sharply past 40%, and explodes past 60%. Risk policies cap drawdown precisely because the math becomes unrecoverable past certain levels - emotionally first, mathematically second.
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