Drawdown calculator
Losing 50% needs a 100% gain to recover, which is the most important sum in trading and the least intuitive.
Drawdown is measured from the highest balance to where it is now. The losing run assumes each loss takes the same percentage of what is left, which is how sizing on risk behaves.
Free, and nothing is stored. Check every figure against your own platform before you trade on it. Nothing here is advice, and trading carries risk.
Drawdown is how far an account has fallen from its highest point. From a high of £10,000 down to £8,500 is a drawdown of 15%.
Getting back is harder than getting there, because the recovery is earned on a smaller balance. The gain needed is drawdown ÷ (100 − drawdown). A 15% drawdown needs about 17.6% to recover. A 30% drawdown needs about 42.9%. A 50% drawdown needs 100%.
The second half of the calculator answers a different question: what would a run of losses do from here? If each loss takes the same percentage of what is left, which is what sizing on risk does, ten losses at 2% leave about 81.7% of the balance. Ten at 5% leave about 59.9%.
Runs of losses are ordinary, not rare. A strategy that wins 40% of its trades has roughly even odds of a run of ten losses somewhere in 300 trades. The risk per trade decides whether that run is a setback or the end of the account.
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