Trading Calculators

Free interactive tools for trade sizing, expected value math, drawdown recovery, and long-term compound returns.

How to use these calculators

Each calculator solves a specific question that defines whether a strategy is viable. Use them in this order:

  1. Position Size Calculator — first. Before any other math, know how much you'll risk per trade. The output drives every other decision.
  2. Expected Value Calculator — second. Plug in your strategy's historical win rate and average win/loss. If EV is negative, the strategy loses money regardless of how disciplined you are. Stop and redesign.
  3. Drawdown Calculator — when in drawdown. Use it to understand the math of recovery and the realistic timeline. The most important behavioral output: drawdown >25% should reduce position size, not increase it.
  4. Compound Growth Calculator — for long-term planning. Plug in realistic monthly returns (2–10%/mo for skilled retail; 20%+/mo is fantasy) and a multi-year horizon. The output frames trading as a long game, not a get-rich-quick path.

What the calculators won't tell you

The calculators give exact math but cannot capture three things that determine actual outcomes:

  • Variance — even with positive expected value, 10-trade losing streaks happen. The calculator output assumes long-run averages; short-run is volatile.
  • Emotional execution — most strategy failures aren't math problems. They're emotional ones: revenge trading after losses, jumping to a 'better' strategy mid-test, increasing size after wins.
  • Regime change — backtest data assumes future conditions resemble past ones. Markets shift (volatility, correlation, liquidity), and a strategy that worked for two years may stop working.

When to use which calculator

Before opening any new trade: Position Size Calculator with current account balance.

Before deciding to keep using a strategy: Expected Value Calculator with last 100+ trade data.

Before increasing position size after wins: Drawdown Calculator with hypothetical 30% downside.

Before mentally projecting future wealth: Compound Growth Calculator with realistic conservative inputs.

Related resources