Drawdown Recovery Math
2:46 · 8 chapters · Forex lessons, part 68
What you'll learn
Lose 50% and you need +100% to get back. Here's the drawdown maths every trader should know.
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- Key point 1
- Why a 50% loss needs a 100% gain to recover
- Key point 2
- The recovery table from a 10% to an 80% drawdown
- Key point 3
- Why deep drawdowns get worse: smaller balance and sizing up
- Key point 4
- How risk per trade and losing streaks set your drawdown
- Key point 5
- A simple circuit breaker: cut risk to 0.5% after a 15% drop
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