Free tool
Drawdown recovery, the gain you need.
A loss takes a bigger gain to recover than it looks. Enter how far your account is down and see the gain it takes to get back. Add your risk per trade and a losing streak to see where a run of losses leads.
Your losses have a source.
EdgeFlow shows which of your confluences cost you money, from your own trades.
How it’s calculated
After a drop you hold a smaller amount, and the gain has to be earned on that smaller amount. Lose half and the half that is left has to double.
The gain needed is the drop divided by what is left after it. A 20% drop leaves 80%, and 20 divided by 80 is 25%.
For a losing streak, each loss takes your risk percent off the balance you have at that moment. So 20 losses in a row at 2% take 33.2% off the account. That is less than 20 times 2%, which is 40%.
Choose starting balance to risk the same amount on every trade. The drop is then the risk times the number of losses.
Read the guide: How much should you risk per trade?
FAQ
Common questions
After losing half you hold half the money. To reach the old balance, that smaller amount has to double.
Drawdown is how far your account has fallen from its highest point, as a percent. If it peaked at 10,000 and now sits at 8,000, you are in a 20% drawdown.
The lower your risk per trade, the slower a streak drains the account. Ten losses in a row cost about 9.6% at 1% risk and about 18.3% at 2% risk.
Longer than most traders expect, even with a good win rate. The losing streak calculator estimates it from your win rate and number of trades.
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