Trading Simulator

What this trading simulator shows

Before risking real capital, traders and investors often stress-test a strategy with win rate, average win size, fees, and position sizing rules. This simulator runs entirely in your browser. It applies a fixed risk-reward ratio on each trade, optional compounding, and platform fees, then reports final balance, profit and loss, and maximum drawdown.

Each run randomizes the order of wins and losses while preserving your target win rate, so you see how sequence risk affects outcomes. For strategy sizing with doubling patterns, review the Martingale strategy calculator. To measure peak-to-trough decline on a known balance path, use the maximum drawdown calculator. For long-horizon wealth growth with a fixed return assumption, the compound interest calculator complements short-term trade simulations.

How each simulated trade is calculated

The model risks 1% of the position size on every trade. A win earns that risk amount multiplied by your risk-reward ratio. A loss forfeits one risk unit. With compounding enabled, the position size equals the current account balance. With compounding off, each trade risks the initial balance only.

Fees are calculated as a percentage of position size and subtracted from each trade result. Maximum drawdown tracks the largest peak-to-trough percentage decline in account balance across the simulated sequence.

Worked example without compounding

Start with $1,000, run 4 trades at a 50% win rate and 2.5 risk-reward ratio, and assume two wins followed by two losses with no fees and no compounding:

• Risk per trade: $1,000 / 100 = $10
• Each win: +$10 x 2.5 = +$25
• Each loss: -$10
• Balance path: $1,025, $1,050, $1,040, $1,030
• Net profit: $30 (3% on $1,000)

The same win rate can produce different final balances depending on whether early trades win or lose, especially when compounding is on. Run multiple scenarios by refreshing or tweaking inputs to understand variance, not just averages.

Frequently asked questions