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AURUM Intelligence
AURUM INTELLIGENCE
XAUUSD · DAILY RESEARCH
Tools · Calculator

Drawdown recovery calculator

The gain needed to get back to a previous peak, and the drawdown a losing streak causes.

Education only, not investment advice; leveraged trading carries a high risk of losing money.

Result
Gain needed to recover
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Drawdown after the losing streak
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Gain needed to recover from it
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How it is calculated

  • Gain needed = drawdown ÷ (100% − drawdown)
  • Drawdown after n losses = 1 − (1 − risk per trade)n, with each loss a fixed share of what is left

Worked example

A 20% drawdown needs 20 ÷ 80 = 25% to recover; 10% needs 11.1% and 50% needs 100%. Five losses in a row at 2% risk each leave the account 1 − 0.985 = 9.61% below its peak, which needs a 10.63% gain to recover.

DrawdownGain needed
5%5.3%
10%11.1%
15%17.6%
20%25.0%
25%33.3%
30%42.9%
40%66.7%
50%100.0%
60%150.0%
75%300.0%
90%900.0%

Things to know

  • Losses and gains do not cancel out: the deeper the drawdown, the larger the gain needed, which is why many traders keep risk per trade small.
  • Contract size, lot step, margin rates and quoting conventions vary between providers and account types. The defaults here are common examples; check your provider’s contract specification and use its figures.
Risk warning

Education only, not investment advice; leveraged trading carries a high risk of losing money. The calculator does arithmetic on the numbers you enter. It does not say whether or how to trade, and results are approximate.

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