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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.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- 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
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.