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Drawdown Calculator

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How It Works

Drawdown measures the decline from your account peak to the lowest point before a new high. A 20% drawdown requires a 25% gain to recover. A 50% drawdown requires 100% gain to break even. This asymmetric math shows why protecting capital is crucial. This calculator helps you understand the recovery percentage needed after losses and the risk of ruin based on your win rate and risk per trade. Professional traders use drawdown limits as circuit breakers, stopping trading when maximum drawdown is reached to preserve capital.

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