Trading Calculators

Risk Plan Calculator

What do we need trading calculators for?

Well, let’s just say that today, we are going to talk about risk management from a different point of view.

In most cases, when it comes to risk management, you will think about the amount of money you are willing to risk per trade, for example, or the percentage. Some traders will talk about where to put their stop-loss and the take-profit, some will talk about the risk-reward ratio, and some will talk about scaling into a position.

Our focus today is building a trading plan for the full month and understanding what parameters we need to have to reach a certain amount of P&L at the end of the month. For that, we have developed a series of trading calculators that I will share with you and show you how to use them.

You can use these trading calculators right here, on our website, or easily embed them to your website or blog.

Trading Risk calculator

The first thing I need to do is choose what type of calculation I want to use because when I’m building a risk plan for the full month I need to understand how many trades I need to make, the risk reward ratio, the success rate, how much I’m losing or willing to lose per trade, what are the fees for that account as well and what’s the total P&L that I’m looking to get. Those parameters need to be aligned in order to get me the outcome that I’m looking for.

In order to understand the $ risk you need to take per trade for the whole month, I’ll choose “Risk” from the drop-down list or use the specific “Risk calculator” (right here, below) and add the parameters that I can expect this month. If you’ve been trading for a while now, you should probably have the numbers to work with.

For Example 1:

You might know the percentage of your success, the risk-reward ratio, and how many trades you usually take on an average month. In that case, you already have the numbers. If you don’t have them and you just started to trade, you can put some random numbers or numbers that make sense to you and then try to adjust them along the way.

For Example 2:

If I’m placing 50 trades a month, my win rate is 60%, the risk-reward ratio is 1.5, fees are $300, and I want the outcome, the bottom line of the month, to be $1,000. In that case, I will need to risk $52 per trade.

If I change those parameters, the outcome will be different.

Let’s say these are the average parameters that I have now. As the month progresses, I need to see where the parameters are according to what I actually have produced. If we are closer to the end of the month and I only took 30 trades but still want to reach that P&L, I either need to make more trades or I can increase the risk to ~$86 because I know that at the end of the month, I will reach 40 trades (instead of 50).

Another possibility is if I find that my win rate is 52% (instead of 60%), what I need to do is either focus really hard on finding those A+ setups and wait for that moment to click the mouse on the specific setup that will get me to that 60% success rate or to stick to the 52% but then I need to increase my risk from 52% to 108%.

P&L Calculator

You can use the P&L calculator if you are interested in calculating, well, your P&L.

Enter the sum you are willing to risk per trade, the number of trades you will be taking this month, your success rate (try to be as accurate as possible; this is not the place to be pretentious!), and your fees in $. After filling out all these parameters, the P&L calculator will calculate the final P&L for that month.

Like the risk calculator, you can also play with the P&L calculator along the way as the month progresses. If you started with those parameters and you are getting closer to the end of the month and you had fewer trades than expected, you can expect that if you take more trades, you will get roughly the same results at the end of the month.

Risk Reward Ratio Calculator

To calculate the RRR you need, enter your Risk, # of trades, win rate %, fees, and P&L, and you will get the right ratio you need in order to see the outcome of the P&L.

If I’m risking $100, making 50 trades with a 60% success rate, with a $300 fee and $2000 P&L, then I need to create a scenario where I’m ending with a 1.43 on the Risk Reward Ratio. In the case that you see that you are below your RRR that you need, or you see that your success rate is lower, you can adjust it or focus on what you need to do in order to reach that 60% success rate, for example.

Trades Calculator

You can use the trades calculator in order to understand how many trades you need each month to reach the outcome that you want.

In the scenario where I’m risking $100, with a win rate of 60%, the RRR is 2, my fees are $500, and the P&L that I want to achieve is $3000, The number of trades I need to trade along the month is roughly 44 trades. That would give me the outcome of the 3000$.

Again, you can always play with it along the way and modify it according to the real parameters that you see for the specific month that you’re trading; sometimes you will be right on the spot, sometimes it will be higher – and that would be great, and sometimes, of course, you will fall below the numbers, and you need to adjust them in order to understand what you need to do, how much you need to risk from now, or how you can increase your success rate right now, or focusing on risk-reward for example, so you need to take those trades that give you enough space, maybe get smaller stop-losses and increase the profit target and play with it along the way.

Win Calculator

As the name suggests, this trading calculator will easily calculate the win-rate you will need to have according to the risk, number of trades, RRR, fees, and your target P&L.

Use the Trading Calculators on your Blog!

We think these calculators are an extremely powerful tool every trader can use, so we made them easy for you to copy and embed them in your blog / course / wherever! Just click on the button and you will get this cool options window that allows you to choose between light-mode and dark-mode and even choose the color that matches your theme!

Trading Calculators Conclusion

Once you have the risk plan it will be much easier for you to execute it according to what you prepared, so that is very important.

Try to play with it at first. If you already have a few numbers, put the numbers in, or if you’re new to trading, just put random numbers, start with them, and continue to increase or modify them along the way.

If you have any questions about the calculators or if you have ideas for more tools we can develop, let us know in the YouTube video comments.

I hope this trading calculator will be as beneficial to your trading as it is to mine!

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