(Feel free to suggest the correct Stackexchange community - or otherwise - if this is not the correct one)
When trading financial markets, a gain of x
%, won't recover a loss of x
% (same applies to any gain-loss scenario, in any market, I assume)
e.g. I start with 100, I lose 2% (98% or original capital), I gain 2%. I'm still in loss (99.96% of original capital)
Is there a formula to calculate the necessary % gain of a single transaction over k
loss of x% gain after y losses of x%? (if the formula is generalized to z
gains of x% and k
losses of x% is preferable - x% is fixed)