Loss Recovery Calculator

Frequently asked questions

Everything you need to know about recovering from a loss and drawdowns on TheDesperateTrader.

How much do I need to gain to recover a loss?

A loss of L percent needs a gain of L divided by (100 minus L), times 100, to get back to even. The gain is always larger than the loss, because you are earning it on a smaller amount of money. A 20% loss needs a 25% gain, a 50% loss needs 100%, and a 90% loss needs 900%.

Why does a 50% loss need a 100% gain?

If you start with 100 dollars and lose 50%, you have 50 dollars. To get back to 100 you must double the 50, which is a 100% gain. The deeper the loss, the more disproportionate the required recovery becomes, which is the core reason experienced traders cut losses early.

What is a drawdown?

A drawdown is the drop from a peak to a low in your account or a position, expressed as a percentage. The recovery table on this page shows how much you must gain to erase drawdowns of different sizes. Small drawdowns are easy to recover; large ones can take years or never come back.

How do I avoid big drawdowns?

Position sizing and stop-losses are the main tools. Risking a small, fixed percentage per trade caps how much any single loss can hurt you. Try our free position size calculator, and use our real-time scanner to catch strength early instead of holding losers.