10 Essential Trading Calculators You Need to Have
Free Algorithmic Trading Calculators
Trading calculators are powerful tools that can help investors and traders better understand the markets and make smart financial decisions. From calculating profits to managing risk, these calculators provide valuable insights into how different trading strategies may perform. Discover ten of the most essential trading calculators in this article.
IMPORTANT NOTE: Roughly half of these calculators you will not find anywhere else - they were developed by me for my personal trading. I use them all the time!
Monte Carlo Calculator And Probability Cone Calculator
This is an advanced calculator, and includes both Monte Carlo analysis (for analyzing backtest trades) and Probability Cone analysis (for tracking live trading results).. After you download the spreadsheet, simply enter your trades, your starting equity and a few other values to perform a Monte Carlo probability analysis and Probability Cone analysis of your trading strategy.
Click on the screenshot below to receive the download.
Click on the screenshot below to receive the download.
Expectancy and Tharp Expectancy
aka
Risk/Reward Calculator
It all starts here. If you do not have a profitable trading strategy - one with positive expectancy - chances are you will not get very far in algo trading. Use this handy calculator to figure out where you are, and what you need to change to get where you want to be. Some rules of thumb: Expectancy after slippage and commission costs should be $50 or greater. Tharp Expectancy should be 0.10 or greater.
You can also treat this as risk/reward calculator, since you enter both the risk amount (Average loss) and the reward amount (average win). The risk/reward calculator is a helpful tool for assessing the potential risks and rewards of a particular trading strategy. This calculator allows you to compare the expected return on a trade against its maximum risk, helping you determine if it’s truly worth taking on that risk. It also provides useful visuals that illustrate various outcomes depending on whether the asset price rises or falls.
You can also treat this as risk/reward calculator, since you enter both the risk amount (Average loss) and the reward amount (average win). The risk/reward calculator is a helpful tool for assessing the potential risks and rewards of a particular trading strategy. This calculator allows you to compare the expected return on a trade against its maximum risk, helping you determine if it’s truly worth taking on that risk. It also provides useful visuals that illustrate various outcomes depending on whether the asset price rises or falls.
FREE Monte Carlo Calculator/ Simulator
Monte Carlo Analysis
This is a more advanced calculator, but it is VERY powerful. After you download the spreadsheet, simply enter your trades, your starting equity and a few other values to perform a Monte Carlo probability analysis of your trading strategy. I use this simulator practically every day. Click on the screenshot below to receive the download.
Fibonacci Calculator
Do you feel that Fibonacci numbers are important? Many traders do. Use this handy calculator to discover Fibonacci retracement and extension values.
The Fibonacci Calculator is powered by Investing.com
Pivot Point Calculator
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Support & Resistance Calculator
Back in the day of pit trading, many floor traders swore by pivot calculations for providing actionable support and resistance areas. This handy calculator lets you try out the major pivot calculations. See for yourself whether pivots have any value!
Since so many traders use pivots, these levels can also be used as support and resistance indicators. Support and resistance calculators are a great tool when it comes to trading. They help explain the probability of price directions depending on existing support/resistance levels. When using these calculators, traders can assess the strength of buying and selling pressures at different price points. This allows them to determine potential entry points with good risk-reward ratios. Additionally, these calculators also provide indicators for when it may be time to close a trade or adjust your position size for an optimal exit point.
Since so many traders use pivots, these levels can also be used as support and resistance indicators. Support and resistance calculators are a great tool when it comes to trading. They help explain the probability of price directions depending on existing support/resistance levels. When using these calculators, traders can assess the strength of buying and selling pressures at different price points. This allows them to determine potential entry points with good risk-reward ratios. Additionally, these calculators also provide indicators for when it may be time to close a trade or adjust your position size for an optimal exit point.
The Pivot Calculator is powered by Investing.com
Frustrated with your algo trading? Check out my article collection for tips, tricks and solid advice...
Compounding Calculator
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Profit/Loss Ratio Calculator
Start out with a certain trading account size, and grow it at a certain annual rate of return for so many years, and what do you end up with? Find the answer here - just enter your starting trading capital, the number of years, your annual rate of return, and you'll see how big your trading account will be at the end.
A profit/loss ratio calculator allows you to find the expected return on investment (ROI) in your trades. This calculator compares the potential profits against the potential losses of any given position, allowing you to determine whether a trade is likely to be profitable. The results can then be used as a basis for executing future trades or adjusting existing ones.
A profit/loss ratio calculator allows you to find the expected return on investment (ROI) in your trades. This calculator compares the potential profits against the potential losses of any given position, allowing you to determine whether a trade is likely to be profitable. The results can then be used as a basis for executing future trades or adjusting existing ones.
Forex Pip Calculator
If you like to algo trade in the Forex markets, you'll find this calculator to be really helpful. Simply enter the trade size, and your account currency base and the calculator will give you the value of a pip. No more trying to quickly convert rates in your head. This one can be a real time saver.
The Pip Calculator is powered by Investing.com
Equity And Drawdown Curve Calculator
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Position Sizing Calculator And Visualizer
Here is a calculator that can help you visualize your equity and drawdown curves. Once you download this spreadsheet, simply enter your trade data, and the spreadsheet will create an equity curve, and a drawdown curve, for you. Very handy when you want to see what your algo trading strategy is doing!
Some astute traders use this as a position sizing calculator, so they can see the equity curves including their choice of position sizing approach. A position sizing calculator is used to determine the amount of money you should invest in each trade. This is determined by taking into consideration the potential risk and reward of a trade, as well as your target level of risk. This can help ensure that you are adequately capitalized for each trade, reducing the chances of excessive losses or gains which could otherwise affect your overall profitability.
Some astute traders use this as a position sizing calculator, so they can see the equity curves including their choice of position sizing approach. A position sizing calculator is used to determine the amount of money you should invest in each trade. This is determined by taking into consideration the potential risk and reward of a trade, as well as your target level of risk. This can help ensure that you are adequately capitalized for each trade, reducing the chances of excessive losses or gains which could otherwise affect your overall profitability.
Current Drawdown Calculator
Here is a calculator you hope you never have to use - a drawdown calculator! Simply enter your peak trading equity value, and your current trading equity value, and this calculator will return your current percentage drawdown. Hopefully that number is very close to zero!
Part Time Trading Calculator
Here is a spreadsheet that will help you determine if you can make it by part time trading. A real eye opener!
Is there a trading calculator you'd like to see on this page? Just send me an e-mail: kdavey @ kjtradingsystems.com and let me know!