Loss recovery calculator

After a losing run, what gain takes me back to where I started?

Result

Gain needed to recover

8.7%

Drawdown so far: $8,000.00 (8.0%)
Dollars to earn back: $8,000.00

For reference

10% down needs 11.1% back
20% down needs 25% back
30% down needs 42.9% back
50% down needs 100% back

The hole deepens faster than it refills; that asymmetry is the case for a small risk per trade.

Not investment advice

How it's worked out

Gain needed = dollars lost ÷ current balance

With your numbers: $8,000.00 ÷ $92,000.00 = 8.7%

How it works

A loss of a given share of the account needs a larger gain to recover, because the gain is earned on what is left: the dollars lost divided by the current balance. Losing 20% needs 25% back, and losing half needs the account to double.

Questions

Why is the recovery bigger than the loss?

Because the gain is computed on a smaller base. After losing 10% of $100,000 you must grow $90,000 back to $100,000, which is an 11.1% climb.

Should I trade bigger to recover faster?

The arithmetic says the opposite. A bigger size after a drawdown makes one more ordinary loss cut deeper into a limit that is already closer. Many funded traders cut their size in a drawdown and let time do the work.

How does this work with a trailing drawdown?

Under a trailing limit the floor moved up with your old peak, so the room left may be smaller than the loss suggests. Check what is left in the max lots calculator.