Compound Trading Calculator

Compound trading means reinvesting your profits into subsequent trades so that each winning trade earns on a larger base. Over many trades, even small positive expected value per trade can produce significant account growth — but losses also compound, making risk management critical.

Expected value is the average profit or loss you'd expect per trade over a large number of trades. It's calculated as: EV = (Win Rate × Win Amount) − (Loss Rate × Loss Amount). A positive EV means the strategy is profitable on average, though individual trades will vary.

Position size determines how much of your capital is at risk per trade. Larger positions amplify both gains and losses. A common risk management rule is to risk only 1–5% of capital per trade to survive losing streaks while still benefiting from compounding on winners.

Win rate determines how often your take-profit is hit versus your stop-loss. Even a high risk-to-reward ratio can lose money with a very low win rate. This calculator helps you find the break-even win rate for your TP/SL setup and see how changes in win rate affect long-term growth.

Risk-to-reward (R:R) is the ratio of your take-profit percentage to your stop-loss percentage. For example, a 3% TP with a 1.5% SL gives a 2:1 R:R. Higher R:R means you need a lower win rate to be profitable, but trades may hit stop-loss more often.

This calculator uses expected value per trade, not random outcomes. It shows the theoretical average result over many trades. Real trading involves variance, slippage, fees, and emotional factors not modeled here. Use this as a planning tool, not a performance guarantee.