Drawdown calculator (max DD and recovery)
A drawdown is the percentage decline from a portfolio's peak equity to its subsequent trough. Maximum drawdown (max DD) is the worst peak-to-trough decline over a backtest or live period; it's the single most important risk number professional allocators look at. The required recovery is asymmetric: a 50% drawdown requires a 100% gain to break even.
How to use
- Paste equity values
One value per line, oldest at top.
- Optional: pick frequency
Daily, weekly or monthly — affects the time-in-drawdown stat.
- Read the result
Drogo returns max DD, current DD and required recovery percent.
Frequently asked questions
- What is an acceptable max drawdown?
- Most professional discretionary traders target a max DD under 20%. Above 30%, behavioural failure is statistically very likely — most retail accounts close after a 35–50% drawdown.
- Why does a 50% drawdown require a 100% gain?
- Because percentages are multiplicative, not additive. After losing 50% you have 0.5 of original equity; you need to double that to get back to 1.0.
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