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For most people it is absolutely possible to lose bodyfat while gaining strength and muscle simultaneously. Especially for individuals who have more than 20lb of fat to lose, it should be expected that a well formulated training regime and diet combined with a healthy lifestyle and circadian rhythm alignment will result in simultaneous fat loss and performance gains. You do not have to pick one or the other, you can get stronger and lose bodyfat at the same time with sufficient protein and proper training combined with adequate rest and a balanced lifestyle. This act of changing the composition of muscle and fat on the body is called body recompositioning.