Tools
Drawdown recovery calculator: the gain you need to get back
Enter a drawdown in percent, or the peak and current balance — the calculator shows the gain that takes the account back to its peak and the number of winning trades in a row at your risk and average RR. A 5–90% table follows.
Why recovery takes more than you lost
A drawdown is measured from the peak, while the recovery is measured from the new, smaller balance. So the gain needed = 1 ÷ (1 − d) − 1, where d is the drawdown as a fraction. −10% needs +11.11%, −20% needs +25%, −50% needs +100%, −90% needs +900%. The deeper the drawdown, the steeper the way back.
How many winning trades in a row
Each winning trade multiplies the balance by (1 + risk × RR): at 1% risk and RR 2, by 1.02. Trades in a row = ⌈ ln(1 ÷ (1 − d)) ÷ ln(1 + risk × RR) ⌉, rounded up. Risk is taken from the current balance.
Example
A 20% drawdown, 1% risk, average RR 2. The gain needed is 25%, and each winning trade adds +2%: ln 1.25 ÷ ln 1.02 = 11.27, so 12 winning trades in a row. For a 50% drawdown — ln 2 ÷ ln 1.02 = 35.00 and a bit more, so 36 trades.
This is a streak without a single loss. Losses along the way make the road longer, so the number is a lower bound, not a deadline.
Why know this before a drawdown
A daily limit and risk per trade exist so a drawdown never reaches the stretch where recovery takes months. The risk per trade calculator shows what a streak of stops in a row turns into.
Frequently asked questions
- How do I calculate what it takes to recover from a drawdown?
- Divide 1 by (1 − the drawdown as a fraction) and subtract 1. A 20% drawdown gives 1 ÷ 0.8 − 1 = 0.25, that is +25%.
- Why does a −50% drawdown need +100%, not +50%?
- The gain is measured on the money you have left. From 100 to 50 is minus 50%, but from 50 back to 100 the balance has to double: +100%.
- How is the number of winning trades calculated?
- The logarithm of the gain needed is divided by the logarithm of the gain from one winning trade and rounded up. Risk is taken from the current balance and losses are ignored.
- What does “12 trades in a row” mean in practice?
- It is a minimum: losing trades along the way make the road longer. The real number depends on your win rate — estimate it through expectancy per trade in the R and risk/reward calculator.
- Should the drawdown be measured from the peak or the starting balance?
- Usually from the peak — the highest balance before the account fell. A prop firm may measure its limit differently, for example from the starting balance — check your program's rules.
Account drawdown in the journal, not by eye
The Trading OS journal draws the equity curve and shows the drawdown from your closed trades, so recovery is measured from fact.
No sign-up: the journal runs in your browser. An account keeps your trades on the server.