Drawdown to Recovery Calculator
No matter if you are trading Binary Options or spot forex or other conventional financial products you can improve your odds of successful trading exponentially by having a plan in place for the max drawdown that you will expose your account to in a given period. This drawdown to recovery calculator helps you discover exactly how much of a percentage gain you will need to recover in order to get your account back to break even. One of the fundamental concepts used by some of the largest and most successful hedge funds is to regularly manage drawdown based on a percentage they will set for the most they will expose on a
day ( Maybe for regular daily market speculators )
week ( maybe for swing traders )
or Month(s) ( Maybe for longer term institutional traders )
You can use this drawdown to recovery Calculator to Tailor the drawdown to be a perfect fit for your individual risk tolerance and trading style. All you have to do is enter your account's current value and then enter some hypothetical numbers. Then press calculate and the calculator will give you the percentage that your account has lost and exactly what percentage your account will need to grow in order to get back to break even from that point. This calculator can be used dynamically to keep track of exactly how much any drawdown real or hypothetical will impact your distance to break even.
You will notice that deeper drawdowns will result in exponentially wider distances to recovery and with discipline a savvy trader may be able to spot and avoid this exponential impact on their account ahead of time by having a plan in place based on numbers so much easier to spot using this drawdown to recovery calculator.