Traditional Investing & Portfolio Theory

How does drawdown recovery work?

Drawdown recovery is the gain required to return a portfolio to its prior peak after a decline, and it is mathematically larger than the loss itself. A drop demands a proportionally bigger climb to break even. For example, a 50 percent loss requires a 100 percent gain to recover, because the gain is measured against the smaller remaining base. This asymmetry is why managing the size of declines matters as much as pursuing gains. Qatobit's research-led, curated QSI crypto indices document their construction so investors can understand the volatility involved before committing capital.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.