What is recovery gain?Recovery Gain
The gain needed to get back to even after a drawdown = drawdown ÷ (1 − drawdown); lose 50% and you need +100%.
Animation · recovery gain
Learn “recovery gain” in an animated lesson
- Forex: Pending Orders & RiskSizing Your Position from the Stop
First decide the most you'll lose on this trade, then work back to the lot size from the stop distance. That's the heart of risk control.
- Risk Management & Trading PsychologyDrawdowns Are Lopsided: Lose 50%, Need 100%
Going from $100 to $50 is a 50% loss, but getting from $50 back to $100 takes a 100% gain. The deeper the loss, the harder the climb out.
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Go to “Sizing Your Position from the Stop”