Calculators
TraderWaves calculators help you plan trades, understand risk and explore possible outcomes. Here are the answers to the most common questions about using them.
Getting started
TraderWaves includes calculators for different parts of your trading process:
- Plan a trade: Position Size, Risk/Reward, Pip Value, Profit, Margin and ATR Size
- Understand risk: Drawdown, Risk of Ruin and Portfolio Risk
- Review performance: Expectancy, Win Rate, Kelly and Monte Carlo
To see the full list, go to the Calculators page.
No. The calculators work with the numbers you enter. They can help you plan and compare scenarios, but they do not recommend trades or predict what the market will do.
The results are based on the information you enter. Actual figures can differ because of spreads, fees, slippage, currency conversion and broker settings, so always check your inputs before placing a trade.
Planning a trade
It helps you calculate a position size using the amount you are prepared to risk and the distance to your stop-loss.
A wider stop means each unit of the trade can lose more before the stop is reached. The calculator reduces the position size so the amount at risk stays the same.
The Risk/Reward calculator compares the amount you could lose if your stop is reached with the amount you could gain if your target is reached. For example, 1:2 means risking 1 for a potential return of 2.
The Pip Value calculator shows how much one pip of price movement is worth for the position size and currency details you enter.
Each one answers a different planning question:
- Profit: estimates the potential profit or loss for a planned trade.
- Margin: estimates how much margin a position may require.
- ATR Size: helps you plan around the market's recent volatility using Average True Range.
Risk and performance
TraderWaves includes three calculators for looking at risk beyond a single trade:
- Drawdown: shows the decline from a previous account peak.
- Risk of Ruin: estimates the chance of reaching a chosen loss threshold using the assumptions you enter.
- Portfolio Risk: helps you review the combined risk across multiple positions.
These calculators help you explore different parts of a strategy's performance:
- Expectancy: estimates the average result per trade from your win rate and average wins and losses.
- Win Rate: shows the percentage of trades that were profitable.
- Kelly: estimates a position-sizing fraction from the performance assumptions you enter.
- Monte Carlo: simulates a range of possible outcome paths using the data you provide.
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