Compound Trading Returns Calculator
Daily Compounding Returns
Per-Trade Compounding
Formula
Final Balance = Starting Balance x (1 + Daily Return%)^Trading Days
Frequently Asked Questions
How does compound trading work?
Compound trading means reinvesting your profits so that each subsequent trade is placed with a larger account balance. This creates exponential growth - your gains generate further gains.
Is 1% daily return realistic?
A consistent 1% daily return is extremely ambitious and unrealistic for most traders over long periods. Even 0.1-0.3% daily compounded can lead to significant returns over a year. Be cautious of strategies claiming very high daily returns.
Why is compounding so powerful in trading?
With compounding, a $1,000 account earning 0.5% per trading day (252 days) grows to about $3,520 - a 252% return. Without compounding, simple interest would yield only $1,260 (126% return).
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