The One Large Loss That Erases 20 Winners
Loss-Recovery Calculator
Reviewed 2026-07-31

Formula:
Winners erased = unusually large loss divided by average winning trade. Recovery gain = drawdown / remaining capital.

Checklist:
- Define the maximum acceptable loss before entry.
- Compare the worst plausible loss with your normal winner.
- Check whether one loss can erase weeks of progress.
- Reduce size or use defined risk when the recovery burden is too large.

Educational use only. Options involve risk and results depend on your assumptions.