Copy-Trading.ai • Risk Tools

Drawdown Recovery Calculator

Understand how much return is required to recover after a drawdown. This tool is educational and does not provide investment advice.

Inputs

Tip: Drawdown recovery is non-linear. Large drawdowns require disproportionately larger returns.
Mode: Educational math model (no forecasts, no advice).
Legal notice: This tool provides general educational information only. It does not constitute investment advice, a recommendation, solicitation, or an offer to buy/sell any financial instrument. You remain solely responsible for your decisions.

Results

Balance after drawdown
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Return needed to recover
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Estimated time to recovery
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Uses your estimated monthly return (optional).
Recovery insight
Run the calculator to see why drawdown recovery becomes harder as losses grow.
Quick recovery table (common drawdowns)
Drawdown Return to break-even Example: $10,000 → after DD
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Note: Recovery math is deterministic; markets are not. This is education, not a performance claim.
Disclaimer: Educational tool only. No investment advice. Copy trading involves substantial risk, including total loss.


Drawdown Recovery Calculator – Understand Losses Before They Compound 📉📐

The Drawdown Recovery Calculator on Copy-Trading.ai is an educational risk-analysis tool designed to help traders and copy-trading users understand one of the most underestimated concepts in trading: drawdown recovery mathematics.

Many market participants focus on returns, signals, or short-term performance. However, long-term survivability in copy trading is primarily determined by drawdown control, capital preservation, and risk asymmetry. This calculator visualizes exactly why losses become increasingly difficult to recover as drawdowns grow.

What the calculator shows 🔍

The tool demonstrates the non-linear relationship between drawdowns and required recovery returns. For example:

  • A 10% drawdown requires an 11.1% gain to recover
  • A 30% drawdown requires a 42.9% gain
  • A 50% drawdown requires a 100% gain

This effect is purely mathematical and applies to all asset classes, brokers, and trading strategies. The calculator makes this relationship transparent and easy to understand, without assumptions about future performance.

Core functions explained ⚙️

  • Balance after drawdown: Shows how capital erosion impacts the base used for future gains
  • Return needed to recover: Calculates the exact percentage return required to reach break-even or a defined recovery target
  • Estimated recovery time: Illustrates how long recovery could take based on a hypothetical monthly return (optional input)
  • Drawdown comparison table: Highlights why avoiding deep drawdowns is often more important than maximizing returns

Why this matters in copy trading 🧠

Copy trading amplifies risk when leverage, correlation, or over-allocation are mismanaged. Large drawdowns can lock accounts into long recovery phases, even when profitable trades follow. This tool helps users stress-test expectations, evaluate risk tolerance, and understand why conservative allocation and drawdown limits are critical.

Educational purpose only ⚠️

This calculator provides general informational and educational content only. It does not provide investment advice, performance forecasts, trading recommendations, or financial guidance. All calculations are illustrative and based on deterministic mathematics, not market predictions.

Use this tool to improve risk awareness, not to make investment decisions.
In trading and copy trading alike, survival precedes success.