AI Loss Recovery Planner: Review Your Next Trade

The AI Loss Recovery Planner reviews a proposed trade entered by hand through the general AI trade analyzer. It cannot build a recovery schedule from your past losses. The gain needed to regain an earlier balance is the shortfall divided by remaining capital, expressed as a percentage. That calculation supplies no recovery date. AI comments can help frame questions, but cannot establish when you will regain money or whether the next trade will succeed.

A recovery percentage uses the smaller balance

After a loss, the percentage needed to reach an earlier balance is calculated from the capital that remains. CME’s risk-management lesson explains this difference between percentage loss and recovery gain. That relationship is arithmetic; it supplies no time estimate or trading opportunity.

In an invented example, an account falls from ₹1,00,000 to ₹80,000, with no deposits or withdrawals. The shortfall is 1,00,000 − 80,000 = ₹20,000. The loss is 20,000 ÷ 1,00,000 × 100 = 20%. The gain required from the smaller balance is 20,000 ÷ 80,000 × 100 = 25%.

A 20% gain on ₹80,000 would add ₹16,000, leaving ₹96,000. It would not restore the earlier balance. The example does not imply that either gain will occur. If deposits, withdrawals or other account adjustments changed the balance, separate them before attributing the difference to trading.

For a distinct observed peak-and-trough calculation, use the maximum drawdown calculator. Keep loss measurement separate from a deadline for replacing the money.

Gain needed to recover a loss: formula and table

Gain needed = loss ÷ remaining balance × 100. Equivalent form: with a loss of L percent, the gain needed is L ÷ (100 − L) × 100. The table applies this to a made-up account that started at ₹1,00,000.

The money to earn is always the original loss, but the percentage rises because the base shrinks. That is also why this planner asks about the new trade on the capital you have now.

How long will recovery take?

Nobody can say, because it depends on returns that cannot be known in advance. The table below is only arithmetic. It shows how many months a steady monthly gain would need, if you assumed the same gain every month with no setbacks. Real results are uneven, so read it as a feel for scale. It is not a target or a forecast.

Steady returns of 5% a month are very rare and are not a reasonable plan. The point is the other way round: a deep loss can take years even under cheerful assumptions, and a shallow one is far easier to repair.

Why doubling size to recover usually backfires

After a loss the urge is to make it back fast by trading bigger. A bigger size makes the next loss bigger too. Take the ₹80,000 account and a run of 5 losing trades in a row. Risking 1% of the balance on each trade leaves about ₹76,079. Risking 2% on each leaves about ₹72,314. The deeper hole needs a larger gain to repair, and a larger gain needs more risk, which can feed on itself.

The mind matters as much as the maths. Trading to win money back is the pattern the revenge-trading guide describes. A written rule, such as smaller size after a loss and a maximum number of trades, protects you when your judgement is under pressure.

A five-step recovery plan after a big loss

• Pause. Step away from trading for a set time that you decide in advance, so the next decision is not made in anger.
• Review the loss in your journal. Was it a planned loss, or did you break your own rules? Separate the two.
• Cut size. Trade smaller than before, so one more loss does not deepen the hole, and keep the one-trade-a-day habit if you use it.
• Write the rules. Entry, stop, target, maximum risk per trade and a daily loss stop, written before the session.
• Track progress by process. Count rule-following trades and review weekly, instead of counting only the money won back.

A loss does not need to be repaired on a schedule. The goal is to keep the account alive and the habits sound, because a sound process is the only thing you can control.

What the analyzer can receive today

Quick mode calculates the planned cash risk, reward, their ratio and risk as a share of capital. Detailed mode adds market context, technical levels, reasoning and a checklist. Its wider scorecard still does not establish a recovery path from your history.

Use the free-text reasoning in Detailed mode for a short, factual review. Quick has no field for a full loss narrative. Neither mode automatically examines every previous trade simply because you opened this page.

Worked example: assess the next setup on remaining capital

Continue the made-up account example with Capital ₹80,000. For an illustrative cash-share long, choose Stock/Equity and enter Entry ₹200, Stop Loss ₹196, Target ₹208 and Qty 25 shares. These are invented inputs for arithmetic, not a proposed security or trading recommendation.

• Stop distance: 200 − 196 = ₹4 per share.
• Planned loss: ₹4 × 25 = ₹100.
• Target distance: 208 − 200 = ₹8 per share; planned reward: ₹8 × 25 = ₹200.
• Reward per amount risked: 200 ÷ 100 = 2.
• Account risk before display rounding: 100 ÷ 80,000 × 100 = 0.125%. Quick shows this to one decimal place as 0.1%.

Detailed mode also has a price-distance percentage: 4 ÷ 200 × 100 = 2%. That percentage uses entry price as its base. It differs from the capital-based calculation. Check which denominator a card uses before comparing the figures.

The proposed trade’s planned reward is separate from the ₹20,000 shortfall. Dividing the shortfall by a target profit would merely count assumed wins while ignoring losses, costs and unavailable setups. It would not establish the trades or time needed to recover.

Write a process review the AI can question

• Record the loss amount and whether it includes charges.
• Identify what the plan said before the losing trade, using your own notes rather than a reconstructed story.
• Separate an ordinary planned loss from changes to size, stop, timing or strategy.
• State what information you are still missing.
• Describe why the next setup meets your written conditions independently of the earlier loss.

An example note might say that you moved a stop after entry and now want to check whether the new planned loss fits the remaining account. That is a concrete behaviour to review. Asking for a trade that will replace the entire shortfall asks the model for an outcome it cannot establish.

The revenge-trading guide addresses decisions driven by the urge to win money back. The overtrading guide covers unnecessary trading frequency. Those are separate review topics, not diagnoses the AI can prove from a single narrative.

Check the response for unsupported certainty

An AI explanation can repeat your assumptions persuasively, miss a contradiction or invent a fact. The joint investor alert published by Investor.gov warns that AI-generated investment information may be wrong even when its inputs are accurate. Verify claims independently and recalculate money amounts.

Confidence and trade scores are not measured recovery probabilities. Detailed mode’s probability, expected-value and Kelly figures use assumed win rates. Kelly is a formula for how much to risk that requires probability assumptions; a displayed value does not show those assumptions fit your actual trading record.

The response can use verdict or action wording. It is unverified model output and does not establish that another trade is appropriate. This page places no orders and provides no financial advice.

Track what changed without treating deposits as profit

OneTradeJournal records trades manually, with notes, emotions, mistakes and plan deviations. You can use your own records to compare what you planned with what happened. The AI only has the context supplied to the relevant review; opening this standalone analyzer does not turn it into an account-wide investigation.

Review process changes separately from account returns. Following a rule can still end in a loss, and a profit can occur after breaking a rule. Adding new capital changes the balance but does not reverse a trading loss. Preserve that distinction in your notes.

The risk-per-trade calculator can help examine a separate loss budget. Check the number against your own circumstances; a preset or favourable AI label does not establish an affordable amount.

Questions after a trading loss

Sources

• CME Group: percentage losses and recovery gains, checked 16 Oct 2026.
• Investor.gov: limits of AI-generated investment information, checked 16 Oct 2026.