Compounding Calculator
See how consistent trading with proper risk management can grow your account exponentially. Small edges compound into huge results.
Compounding Calculator
Monte Carlo simulation with 500 runs, percentile bands & risk metrics
Initial capital
Extra funds/month
Profit-taking
% of wins reinvested
% of trades won
Return per win
Loss per losing trade
% of account
Avg frequency
Per trade (0.035% taker)
Final Balance (Median)
$5,019.91
+402.0% ROI
Total Profit
+$4,019.91
Expectancy
+0.65%
Edge per trade
Profit Factor
2.44
Strong edge
Kelly Criterion
32.5%
Half Kelly: 16.3%
Payoff Ratio
2.00:1
Avg win / avg loss
Sharpe Ratio
6.34
Excellent
Sortino Ratio
13.20
Downside-adjusted
Risk of Ruin
0.0%
P(50% drawdown)
Expected Max DD
-0.0%
Median worst
Avg Monthly
+33.5%
Total Trades
264
5/week
2x Capital
Month 6
Doubled
5x Capital
Month 12
5x reached
10x Capital
—
Not in 12m
Max Losing Streak
6
Expected median
Account Growth — 500 Simulations
Drawdown from Peak (Median Run)
Outcome Distribution — 500 Runs
100% profitableConsecutive Loss Probability
Expected max streak: 63 in a row
100.0%
5 in a row
99.2%
7 in a row
61.9%
10 in a row
8.3%
15 in a row
0.2%
20 in a row
0.0%
$5,019.91
Median outcome after 12 months across 500 simulations \u2014 264 trades, Sharpe 6.34
Monthly Breakdown (Median Run)
| Month | Balance | P&L | Fees | Deposits | Withdrawn | Drawdown |
|---|---|---|---|---|---|---|
| Start | $1,000.00 | — | — | — | — | — |
| M1 | $1,104.74 | +$112.80 | -$8.06 | — | — | -0.0% |
| M2 | $1,295.57 | +$199.98 | -$9.16 | — | — | -0.0% |
| M3 | $1,431.26 | +$146.23 | -$10.53 | — | — | -0.0% |
| M4 | $1,781.80 | +$362.51 | -$11.97 | — | — | -0.0% |
| M5 | $2,089.57 | +$322.49 | -$14.71 | — | — | -0.0% |
| M6 | $2,308.43 | +$235.83 | -$16.96 | — | — | -0.0% |
| M7 | $2,550.22 | +$261.02 | -$19.24 | — | — | -0.0% |
| M8 | $2,902.74 | +$373.91 | -$21.39 | — | — | -0.0% |
| M9 | $3,507.33 | +$629.10 | -$24.51 | — | — | -0.0% |
| M10 | $4,113.16 | +$635.44 | -$29.60 | — | — | -0.0% |
| M11 | $4,823.64 | +$745.03 | -$34.55 | — | — | -0.0% |
| M12 | $5,019.91 | +$234.47 | -$38.19 | — | — | -0.0% |
Results use 500 Monte Carlo simulations with a deterministic seed (same inputs = same output). Charts show percentile bands (P10\u2013P90) representing the range of likely outcomes. Kelly Criterion shows theoretical optimal bet size — most traders use half-Kelly for safety. Past performance does not guarantee future results.
The Power of Compounding
A 1% daily gain doesn't sound like much. But compounded over a year, it turns $1,000 into $37,000. Small, consistent edges create exponential growth.
Risk Management is Everything
Risking 1-2% per trade means you can survive 50 consecutive losses and still have capital. The math protects you when psychology fails.
Win Rate vs Risk:Reward
A 40% win rate is profitable if your average win is 2.5x your average loss. The calculator shows how these parameters interact.
Common Scenarios
Conservative Trader
55% WR · 1.5% win · 1% loss · 1% risk · 3 trades/week
$1,000 → ~$1,800 in 12 months
Balanced Trader
50% WR · 2% win · 1% loss · 2% risk · 5 trades/week
$1,000 → ~$3,500 in 12 months
Aggressive Trader
45% WR · 3% win · 1.2% loss · 3% risk · 10 trades/week
$1,000 → ~$8,000 in 12 months
Results are approximate and based on Monte Carlo simulation. Actual results vary per run.
Keys to Compounding Success
Never risk more than 2% of your account on a single trade
A 55% win rate with 2:1 reward-to-risk is a proven formula
Add monthly deposits to accelerate growth even during drawdowns
Track every trade in a journal to measure your actual win rate
Reduce position size during losing streaks to protect your capital
The first 10x is the hardest — the second 10x comes much faster