The process of recovering from a loss to reach previous equity levels. Recovery is asymmetric: a 10% loss requires 11.1% gain, 20% needs 25%, 50% needs 100%. In prop trading, recovery is even harder b
The process of recovering from a loss to reach previous equity levels. Recovery is asymmetric: a 10% loss requires 11.1% gain, 20% needs 25%, 50% needs 100%. In prop trading, recovery is even harder because of ongoing drawdown limits. Prevention through proper position sizing is always better than recovery.