Formula
The formula is displayed so the result can be checked independently. PreBreakout does not use a hidden scoring model on this page.
Worked hypothetical example
A 20% drawdown leaves 80% of the starting value. Returning from 80 to 100 requires a 25% gain.
Important: the numbers are fictional and are not associated with a security, issuer or current market price.
What this calculator does not tell you
- A 50% drawdown requires a 100% gain to recover.
- The formula is purely mathematical and applies to any quantity expressed as a percentage decline.
- A 100% drawdown cannot be recovered mathematically from zero.
Market execution can differ from arithmetic inputs because of spreads, gaps, slippage, order types, broker constraints and other factors. This tool does not attempt to model those effects unless an input explicitly asks for a value.
How to use it for learning
Change one input at a time and observe how the result changes. This is especially useful for understanding sensitivity: wider stop distance changes position-size arithmetic, a taller pattern changes a measured-move result, and a larger reward-to-risk ratio changes the theoretical break-even win rate. The exercise is about the formula, not about identifying a trade.