Drawdown arithmetic: why a 50% loss needs a 100% recovery
Losses and recoveries are measured on different bases. From that one fact: the recovery table, sequence risk, and where the 50% close-out rule stands.
Departments
Risk management
The arithmetic of survival: sizing, drawdown and sequence risk.
2 stories
Why position sizing beats prediction
Forecasts are guesses; size is a decision. How fixed-fractional risk, stop-distance maths and honest expectancy protect an account better than being right.