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System analysis

Profitability Calculator

Evaluate the statistical quality of a trading system: expectancy per trade (R), theoretical linear projection, simulated outcome range (median and percentiles), loss streak probability, and drawdown stress. For system evaluation only — not a broker, lot-size, or income forecast calculator.

Inputs

Modeling aid: reduces effective win size to reflect execution drag. Not a mathematical truth.

For system evaluation only. Not a forecast of actual returns.

Core metric

Expectancy per trade (R)

+0.5 R

Expectancy (R)

-1R0+1R

Theoretical linear expectancy

Raw projection assuming constant execution and full trade frequency. Real outcomes vary due to variance, streaks, slippage, and missed trades.

Linear monthly: +22%
Linear yearly: +264%

These values assume constant execution quality, fixed risk, and full trade frequency. Real outcomes will vary due to variance, streaks, slippage, and missed trades.

Wins / month (expected)

22

Losses / month (expected)

22

Max safe risk (5% daily DD)

2.5%

Drawdown stress

Risk 1% vs 2.5% max

Drawdown stress — risk vs 5% daily DD threshold

Probabilistic outcome range

Simulated monthly returns (5,000 runs). Median and percentiles reflect variance, not linear expectancy.

Median monthly return

+22%

10th percentile

+10%

90th percentile

+34%

Probability of negative month

1%

5th %: +7%95th %: +40%Simulated max losing streak (avg): ~4.78

Distribution of simulated monthly returns

Loss streak probability

P(exactly k consecutive losses) in next month

Expected max losing streak (approx.): ~7.04 · Profit factor: 2

Disclaimer

For system evaluation only. Expectancy and streaks are theoretical. Past results do not guarantee future performance. Not advice; use conservative risk and your own due diligence.