optionhk wrote: Thu Mar 24, 2022 12:53 am Can you please put together a spread sheet based on depreciation (as against compounding)?
I have located the formula, but I am an Excel novice. Corresponding graphic is also located. But unable to find the kind of spreadsheet with starting balance (for counting drawdown) .


Let ne check:
for 40% losses gains to substitute must be . . . . %

To loss:
B1*(1-L%/100) = B2 --------------(1)

To retain:
B1 = B2*(1+P%/100) ----------------(2)


divide (1) by (2)
(B2*(1+P%/100))*(1-L%/100) = B2

(1+P%/100)*(1-L%/100) = 1

(1+P%/100) = 1/(1-L%/100)

P%/100 = 1/(1-L%/100)-1

P% = 100 * [ 1/(1-L%/100)-1 ]

substitute L% by 40

P% = 100 * [ 1/(1-40/100)-1 ]


P% = 100 * [ 1/0.60-1 ] = 66.67%