Gain % per period: The most relevant variable of this compounding gains calculator! The data used in this field can be used to simulate the gain percentage per any period, to suit your trading style. For our example, we will assume that over a period of a year we will have 30 consecutive winning trades. Number of periods: This field is the number of periods where traders can simulate a winning strike of any consecutive winning trades. For our example we will use a starting balance of 1,000 units of any account base currency. Starting balance: This field represents the initial investment value, or initial account equity.
FOREX COMPOUND CALCULATOR HOW TO
Let's see how to use our calculator, field by field. This compound gains calculator is useful to accurately find out how much money can be added to the initial starting balance, over a number of periods with a set gain percentage. With this compounding calculator traders can simulate and choose their preferred settings in order to accurately calculate the account growth percentage with a chosen set of profitable trades, over a certain period of time.
Using this tool can illustrate to traders how powerful compounding the gains can be, and, that even with a moderate gain percentage of 1% (for example) per trade, after just 70 successful trades the initial investment value will be doubled! Then, it simulates the reinvesting of the new balance (previous investment value + profit) for a set of periods (5 trades per day, 10 trades per week, 20 trades per month, etc.), always compounding the gains into the previous investment value, allowing for bigger investment values and higher profits.
The compound growth calculator works by adding the profit obtained with a trade, and with a set gain percentage, to the original investment value. Traders mastering this technique will, over a set period of time, build up the trading account’s capital in an exponential and highly profitable way.Ī forex compounding calculator is the perfect toll to simulate the growth of a trading account, by compounding the gains with a set win percentage per trade. What is CompoundingĬompounding is a money management technique in which profits from successful trading are reinvested to allow bigger trade sizes, and ultimately, higher earnings over time. Use our precise compound profit calculator to help you calculate your trading account growth rate by compounding gains with a chosen win percentage per trade.
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