There is a contradiction in what you post. You don't need to know that a 50% loss requires next a 100% profit to recover. Because if you guard your money you will never have a 50% loss. If you have 50% losses you should review your trading plan. I also don't agree with that sentence because: If you guard your money you will never take the maximum margin you can get. Because trading the maximum margin you can get is crazy and irresponsible. Just the opposite of guarding your money. If you don't use the maximum margin you can get, after a loss you don't need necessarily to reduce size. So then you don't have the resizing handicap. I only reduce size once I reached a 20% drawdown. So my recovery stays 1 on 1 till I reach -20%. I never trade less than 5 times the minimal margin, so there is room to stay on size. If you do that, a 25% loss will be recovered with a 25% profit. So you need only 75% of the move a resized position would need (in case of the 25% loss). For a 50% loss it becomes even more horrible.