Breakeven Calculator

Calculate your trading edge

A statistically relevant sample size of at least 30 historical trades are required to get dependable data. A higher number of trades provides a more reliable result.

  1. Determine the total number of profitable trades you’ve had and enter the average profit into the appropriate area below.
  2. Determine the total number of losing trades you’ve had and enter the average size of loss in the box below.
  3. Hit the “Calculate” button.

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Average Trade Profit
Average Trade Loss
Profit Ratio:
Loss Rate:
The Percentage of Trades needed to Breakeven %

Trading edge = (Actual winning percentage) – (Breakeven winning percentage)

For example assume:

    1. Total number of trades: 400
    2. Total number of profitable trades: 300, average trade profit: $100
    3. Total number of losing trades: 100, average trade loss: $220
    4. % total trades that must be profitable to breakeven: 69%
    5. Actual winning percentage: 300 profitable trades / 400 total trades = 75%
    6. Trading edge: 75% actual win rate – 69% breakeven win rate = 6%

     

  2. NOTE: Trading edge might be negative.