How much reserve capital do I need to survive my worst historical drawdown happening again?
Size Your Reserve
Base this on the worst drawdown you have actually experienced, not a guess at what feels unlikely.
Your Result
Enter your account size, worst drawdown, and safety multiple, then click Calculate Reserve to see your recommended buffer.
How this is calculated
This converts your worst historical drawdown percentage into a dollar figure at your current account size, then multiplies it by your chosen safety multiple.
A safety multiple of 1.0 sets aside enough to survive an exact repeat of your worst drawdown. A multiple above 1.0 builds in room for a somewhat worse one.
This reserve is meant to sit outside your active trading capital, not be traded with, so it is actually there if a drawdown happens again.
A drawdown worse than anything in your history is always possible. This tool sizes a buffer against your documented worst case, not a theoretical maximum.
This is a capital-planning calculation based on the numbers you enter, not a prediction that your next drawdown will match your last one.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Trading involves risk of loss, and past position sizing decisions do not predict future results. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation - always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
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