Trade Return Calculator for Stocks, Forex, and Crypto, etc.

The Trade Return Calculator is a powerful tool designed to help traders simulate and analyze potential returns from a series of trades. This calculator takes into account various factors that influence trading outcomes, providing a realistic projection of trading performance.

Features

• Calculate end balance after a series of trades
• Determine total return percentage
• Compute average return per trade
• Simulate trading outcomes based on win percentage and risk-reward ratio

Formulas for Trade Return

Gain per Trade:

$\text{Gain per Trade} = (\text{Risk Amount per Trade} \times \text{Reward-to-Risk Ratio} \times \text{Win Percentage}) - (\text{Risk Amount per Trade} \times (1 - \text{Win Percentage}))$

Risk Amount per Trade:

Risk Amount per Trade is the amount of money that is risked on each trade, is Risk Amount / Start Balance.

$\text{Risk Amount per Trade} = \text{Current Balance} \times \text{Risk Percentage}$

Total Gain:

blance with trades Gain

Average Gain per Trade:

$\text{Average Gain per Trade} = \frac{\text{Total Gain} - \text{Current Balance}}{\text{Number of Trades}}$

Total Return (%):

$\text{Total Return} = \frac{\text{Total Gain} - \text{Current Balance}}{\text{Current Balance}} \times 100$

Calculation Steps

1. Initialize: Start with the initial balance.

2. For each trade:

   • Calculate the risk amount: risk amount = current balance * risk percentage
   • Generate the balance after the each trade
     • profit = risk amount * (reward-to-risk ratio * win percentage - (1 - win percentage))
     • new balance = current balance + profit

3. After all trades:

   • Calculate total return: (final balance - initial balance) / initial balance * 100
   • Calculate average return per trade: (final balance - initial balance) / number of trades

4. Display Results:

   • Show the average return percentage per trade
   • Show the total gain
   • Show the total return percentage

This simulation provides a realistic model of trading outcomes, considering both winning and losing trades based on your input parameters.

How to Use

1. Enter your starting balance
2. Set your typical risk percentage per trade
3. Input your risk-reward ratio
4. Specify your expected win percentage
5. Define the number of trades to simulate
6. View the calculated results instantly

Factors Considered

• Starting Balance: Your initial trading capital
• Typical Risk: The percentage of your balance risked on each trade
• Risk-Reward Ratio: The ratio of potential profit to potential loss
• Win Percentage: Your expected success rate for trades
• Number of Trades: The total number of trades to simulate

Interpretation of Results

• Average Return per Trade: the return for each individual trade
• Total Gain: the total profit or loss from all trades
• Total Return: the overall percentage gain or loss on your initial investment

This calculator provides valuable insights for developing and refining your trading strategy. Remember that past performance and simulations do not guarantee future results. Always practice responsible risk management in your actual trading.

Frequently asked questions

What is the risk amount?

Risk amount is the amount of money that is risked on each trade, is Risk Amount / Start Balance.

What is the risk percentage?

Risk percentage is the percentage of your balance risked on each trade, is Risk Amount / Start Balance.

Is it free?

Yes, this tool is free to use.

References

Rate of return