// TRADING TERMINOLOGY
What is Drawdown Recovery?
The amount of profit required to return an account to its previous peak after a loss.
In-Depth Explanation
Because losses are calculated from a smaller base, you always need a larger percentage gain to recover. For example, a 50% loss requires a 100% gain to break even.
Practical Example
"The trader focused on drawdown recovery after a series of five losing trades."
Related Terms
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