Trading Calculators
Free trading calculators for position sizing, risk management, and trade analysis. Master your risk before entering any trade.
Position Size Calculator
Most PopularCalculate optimal share quantity based on account size, risk percentage, and stop loss distance. Essential for proper risk management.
Kelly Criterion Calculator
Find the mathematically optimal percentage to risk per trade based on your win rate and reward-to-risk ratio.
Risk of Ruin Calculator
Calculate the probability of blowing your account based on your edge, win rate, and risk per trade.
Breakeven Calculator
Calculate risk/reward ratio, R-multiple, and the minimum win rate needed to be profitable.
Stop Loss / Take Profit Calculator
Calculate dollar risk, dollar reward, R-multiple, and breakeven win rate using entry, stop loss, and take profit prices.
CAGR / Annualized Return Calculator
Calculate compound annual growth rate (CAGR) and total return from starting value, ending value, and time period.
Sharpe Ratio Calculator
Measure your strategy's risk-adjusted performance using the annualized Sharpe Ratio. Enter returns, risk-free rate, and frequency.
Sortino Ratio Calculator
NewMeasure risk-adjusted returns using downside deviation instead of total volatility. Better for strategies with asymmetric return profiles.
Why Risk Management Matters
Professional traders know that protecting capital is more important than making money. A single oversized loss can wipe out weeks of gains. These calculators help you:
- Size positions appropriately for your account
- Understand your mathematical edge
- Calculate the probability of account blowup
- Determine minimum win rates for profitability
Frequently Asked Questions
What is position sizing in trading?
Position sizing determines how many shares or contracts to buy based on your account size and risk tolerance. Proper position sizing ensures no single trade can significantly damage your account.
What is the Kelly Criterion?
The Kelly Criterion is a mathematical formula that calculates the optimal percentage of your capital to risk on each trade, maximizing long-term growth while minimizing risk of ruin.
How do I calculate risk of ruin?
Risk of ruin is calculated using your win rate, average win/loss ratio, and the percentage you risk per trade. It tells you the probability of losing your entire account over time.
What is a good risk/reward ratio?
Most traders aim for at least a 1:2 risk/reward ratio, meaning potential profit is twice the potential loss. However, the optimal ratio depends on your win rate and trading strategy.
How much should I risk per trade?
Most professional traders risk 1-2% of their account per trade. This allows for a string of losses without significant drawdown. The Kelly Criterion can help optimize this based on your edge.
What is CAGR (Compound Annual Growth Rate)?
CAGR measures the annual growth rate of an investment over a period longer than one year, assuming profits are reinvested. It smooths out volatility to show what steady annual return would produce the same result.
What is the Sortino Ratio and how does it differ from Sharpe?
The Sortino Ratio measures risk-adjusted return using only downside deviation (losses below a target), while the Sharpe Ratio uses total volatility. Sortino is better for strategies with asymmetric returns since it doesn't penalize upside volatility.