Max Drawdown and Recovery Calculator | Tradetron
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Max drawdown and recovery calculator

Maximum drawdown is the largest fall from a peak to a later low, as a percent of the peak; getting back needs a larger percent gain than the fall, because the gain is measured from the lower value: a 50% drawdown needs a 100% gain to recover.

Enter a peak and a trough, or paste a series of account values, to get the drawdown and the gain needed to recover.

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Maximum drawdown –
Gain needed to recover–
Fall from the peak–
Change from start–
Recovered–

Calculations are illustrative, for education only, and are not investment advice.

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How to use it
  1. [ 01 ]

    Choose Peak and trough if you know the highest value and the lowest value after it. Add a starting value if you also want the change from where you began.

  2. [ 02 ]

    Choose Equity series to paste account or strategy values in date order, one per line or separated by commas.

  3. [ 03 ]

    Read the maximum drawdown, the peak and trough it ran between, and the gain needed from the trough to get back to the peak.

  4. [ 04 ]

    For a series, the calculator also shows whether the curve has already recovered and the drawdown from its high at the last value.

Recovery table

The deeper the fall, the larger the climb back.

DrawdownGain needed to recover
5%5.3%
10%11.1%
20%25%
25%33.3%
30%42.9%
40%66.7%
50%100%
60%150%
75%300%
90%900%
Questions

Common questions.

How is maximum drawdown calculated?
Track the running high of the equity curve. At each value, the drawdown is (running high − value) ÷ running high. The maximum drawdown is the largest of those figures across the whole series.
Why does a 50% fall need a 100% gain to recover?
The fall is measured from the peak and the recovery from the trough. ₹1,00,000 falling 50% leaves ₹50,000, and ₹50,000 has to double to get back to ₹1,00,000. The gain needed is peak ÷ trough − 1.
What is the difference between drawdown and loss?
A loss is measured from where you started. A drawdown is measured from the highest point reached, so an account can be in drawdown while still above its starting value.
Does a small past drawdown mean a strategy is safe?
No. Maximum drawdown describes the period you measured. A different period, or live trading with costs and slippage, can produce a deeper one.
What values can I paste into the equity series?
Account or strategy values in date order, such as a daily closing balance. Separate them with commas, spaces or new lines. Values must be above zero.
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Calculations are illustrative, for education only, and are not investment advice.

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