TraderTracked / Free tools / Compounding planner

Trading compounding planner

How your account could grow if you risk a fixed % of the balance on every trade and hit your average results. Month by month.

45%
1 : 2.0
%
12
—after 12 months
Total return —
Average month —
Expectancy —
Doubles in —
Month 1Month 12

How compounding works in trading

If you risk a fixed percentage of your current balance, your position size grows as the account grows. Each win is a little bigger than the last, and each loss a little smaller. Over hundreds of trades that adds up.

Growth per trade ≈ 1 + (Risk % × Expectancy in R)

At 1% risk and +0.35R expectancy, the average trade adds 0.35% to the account. Twenty trades a month compounds to about 7% a month, before costs.

Why this is a best case

The planner assumes you hit your average results every month. Real trading doesn't work like that. Losing months, drawdowns and changes in market conditions all happen, and the order of wins and losses matters: a 30% drawdown needs a 43% gain to recover. Use this as a picture of what consistent execution is worth, not a forecast.

Small edges, big differences

Try moving the win rate by 5 points or the R:R by 0.5. The end balance changes far more than you'd expect, which is why tracking your real numbers and fixing small leaks matters more than finding a new strategy.

Before increasing risk to grow faster, check your risk of ruin. Compounding only works if the account survives long enough.

Frequently asked questions

Should I compound my trading account?

Risking a fixed % of the current balance is the standard way to size positions, and it compounds naturally. Many traders also withdraw profits regularly, which slows growth but locks in gains.

What is a realistic monthly return for a trader?

Consistent professional traders often make 1% to 5% a month. Anything above 10% a month sustained over years is very rare and usually means risk is too high.

Does compounding work on a prop firm account?

Partly. Your risk per trade is usually based on the starting balance and profits are paid out rather than reinvested, so growth is closer to linear. Compounding matters more on your own capital.

How long does it take to double an account?

It depends on your expectancy, risk and number of trades. At +0.3R expectancy, 1% risk and 20 trades a month, an account roughly doubles in about a year before costs.

Plan with your real numbers

TraderTracked shows your actual win rate, average R and monthly results from every trade you log, so your plan is built on what you really do.

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More free tools

Break-even win rate & expectancyThe win rate you need at your R:R, and what your edge is worth per trade.Open tool →Risk of ruin calculatorThe odds of hitting your max drawdown at your win rate, R:R and risk.Open tool →Pip value calculatorWhat one pip is worth for any pair and lot size, in your account currency.Open tool →

These calculators are for planning and education. They are not financial advice. Always check contract sizes, pip values and rules with your own broker or prop firm.