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Risk Per Trade Calculator

The Risk Per Trade Calculator is powerfully designed to assist traders in managing their risk and growing their trading account in an efficient and effective manner - all for FREE

What is the Risk Per Trade Calculator?

The Risk Per Trade Calculator is carefully crafted to support traders in skillfully managing their risk and efficiently nurturing the growth of their trading account. If all fields are filled in correctly and the trader has a profitable strategy, they will be given a suggested percentage of their account to risk every trade that they enter. This can be useful since too many traders find themselves over-risking their trades and eating away at their hard-earned capital. This calculator is intended to offer traders a thoughtfully calculated percentage of their account to risk for every trade placed, with the goal of minimizing drawdown, managing risk, and enhancing account growth efficiency. It is important to recognize that all trading involves inherent risks, and outcomes can vary. Traders should exercise their discretion and consider their individual risk tolerance.

Who is the Risk Per Trade Calculator for?

The Risk Per Trade Calculator has been meticulously designed to cater to a diverse range of traders across all asset classes. Whether you're involved in swing trading forex pairs, executing day trades on index futures, scalping cryptocurrencies, or engaged in position trading commodities, our tool is primed to guide you toward streamlined account growth. It welcomes seasoned traders refining their strategies as well as novices eager to learn, offering informed decision-making and optimized risk management. This tool is designed for traders who possess a market edge through a profitable strategy, rather than aiming to compensate for a lack of such an advantage.

How do I use the Risk Per Trade Calculator?

Risk : Reward: Every trade you enter has a Risk : Reward (R:R) ratio. For example: if you enter a trade with a 10 pip stop loss and a 20 pip take profit, your R:R is 1:2. For the calculator, all your need is your reward since there is a standard 1 risk already set. You can determine your reward per 1 risk by diving your take profit in pips/point/handles by your stop loss in pips/points/handles. For the best results, log your trades and their respective R:R ratios and use the average reward.

 

Win Rate: Every strategy has a win rate percentage (amount of times it wins per 100 trades). For example: if you enter and exit 100 trades and win 80 of them, your win rate is 80%. You can determine your win rate by dividing your amount of wins by your total number of trades. The more trades you take with a specific strategy, the more accurate your win rate will become. For the best results, log your trades and keep track which ones were winners and which ones were losers.

Trades Per Week: You can reach this number by diving your total amount of trades by the amount of weeks you have traded. For example: if you entered 500 trades over the course of 42 weeks and you entered at least 1 trade every week, your average trades per week is 11.9. For the best results, log your trades and the amount of trades you entered every week and use the average number of trades per week.

Remember, the more data you have about your trades and your personal trading strategy, the more accurately we can provide a suggested risk percentage to use per trade.

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