Determine the value of your trade

Determine the value of your trade

Simply put it in a mathematical formula.
Lets say you have 60% win rate, and 1:1 reward ratio, and you risk 20% of your capital in each trade.

If you win, you win 20% of capital. You win 60% of the time.
If you lose, you lose 20% of capital. You lose 40% of the time.
Example capital is $1000.

You can put into your calculator: (1000*1.2^0.6)*0.8^0.4
The answer shown will be roughly 1020.33. That means in this particular trade the expected value is actually 2.033% gain. That is used to calculate the smooth blue line from the last post. (1000 times 1.0233 per trade over 200 repetition)



With that, you can have an estimation of your trade value with any given win probability, reward ratio and risk percentage. Bear in mind, even if your strategy is sound, the outcome will not fully resembles the estimated line, just like the above chart.

Trade Value Calculator

Trade Value Calculator













Capital Growth Simulation

Capital Growth Simulation

Enter your base capital:





Final Capital: $

Percentage Change: