Compounding Calculator

Starting balance: This represents the initial account equity. Let’s use, for our example, a starting balance of 1,000 units of any deposit currency.

Number of periods: In this field traders can simulate a winning strike of x consecutive winning trades. Please note: the period is every time you receive an interest on holdings, or, close a trade in profit, etc. For example:

Let’s use, for our example, a series of 6 consecutive winning trades.

Gain % per period: The crucial field of the calculator, used to simulate the gain percentage per any period of compounding. It can be used by the trader who does 5 daily trades with a target of 0.05% return per trade. It can also be used by a trader doing 5 weekly trades and targeting 1% return per trade, even a long-term trader, doing 12 trades per year and targeting 5% return per trade. For our example we will use a gain percentage per period of 2%.

Then, we hit the “Calculate” button.

The results: “The Ending Balance” after compounding the gains of 6 consecutive winnings and the “Total Gain” percentage. For this case, an initial equity of 1,000 units, of any account currency, after compounding the gains of 6 consecutive winnings, is now 1,126.16 units.

This means that by compounding just 6 winning trades and taking a low profit percentage of only 2% per trade, the account balance has grown by 12.6%.

On the results above there’s also a detailed breakdown of how each compounded trade increased the account balance, how much each compounded trade is in total percentage and the ending account balance.