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Compound Returns Calculator

See how consistent gains grow your account over time

Understanding Compound Returns

Compound returns occur when gains are reinvested, allowing traders to earn returns on both the initial capital and accumulated profits.

Example: Starting with $10,000 and averaging 1.5% per trade:

Trade 1: $10,000 × 1.015 = $10,150
Trade 2: $10,150 × 1.015 = $10,302
Trade 3: $10,302 × 1.015 = $10,457
After 100 trades: $44,677 (+347%)

This demonstrates exponential growth. Small consistent gains compound significantly over time. For educational purposes only.

The Power of Consistency

Scenario: Two traders start with $10,000. Both average 1.5% per trade.

❌ Trader A: Withdraws Profits

Always trades $10,000
Earns $150 per trade
After 100 trades: $25,000 total

✅ Trader B: Compounds

Reinvests all profits
Position size grows each trade
After 100 trades: $44,677 total

Trader B makes 78% more by compounding. This illustrates why many traders reinvest profits rather than withdraw them.

Important Considerations

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Consistency is rare: Maintaining a positive average return requires discipline and a proven strategy.

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Drawdowns happen: Real trading includes losing streaks that can temporarily reduce account size.

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Risk management matters: Compounding only works if you protect capital with proper position sizing and stops.

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Start small: Many traders begin with conservative targets (0.5-1% per trade) and focus on consistency.

Track Your Compound Growth

MarketDly tracks your performance and shows compound growth over time