Risk & Drawdown Calculator (Losing-Streak Simulator)
Why this math matters more than your entry signal
Losses compound off the remaining balance: after n losses at r% risk you keep (1 − r/100)n. And recovery is asymmetric — the deeper the hole, the disproportionately bigger the climb out:
| Drawdown | Gain needed to recover |
|---|---|
| 10% | +11% |
| 25% | +33% |
| 50% | +100% |
| 75% | +300% |
This is exactly why martingale-style "recovery" systems eventually fail — they concentrate risk right when the math is most against them. More on that in gold EA risk management.
Frequently asked questions
How much should I risk per trade on gold?
1–2% is the disciplined norm. Ten losses at 1% leaves ~90% of the account; at 10% it leaves ~35%.
Why do losses compound?
Each loss comes off the remaining balance: (1 − r/100)n after n losses.
How much gain recovers a drawdown?
10% needs +11%, 25% needs +33%, 50% needs +100% — avoid the deep hole in the first place.
Do good strategies have losing streaks?
Yes — even 60%-win strategies regularly hit 4–6 straight losses. Size for the streak.
Related
- Gold Lot Size Calculator · Gold Pip Calculator · Gold Session Clock
- Drawdown explained: why it matters more than profit
- How much money to start a gold EA?
- Do gold trading robots actually work?
Risk-first automation
Our free gold EA is non-martingale with a fixed stop-loss on every trade — sized to survive streaks.
Get the Free Gold EA →Educational tool only, not financial advice. Simulates fixed-percent risk with consecutive losses; real results also depend on spreads, slippage and strategy. Trading gold carries substantial risk.