Trading guides
The concepts behind every calculator, explained with worked numbers. Each guide links to the tool that puts it into practice.
What Is the Risk/Reward Ratio? How to Use It in Trading
What the risk/reward ratio measures, how it links to win rate and expectancy, and why a 'good' ratio depends on your strategy.
R-Multiple · 7 min readWhat Is an R-Multiple? Measuring Trades in Units of Risk
How R-multiples normalise trade results, how to read an R distribution, and how average R becomes your system's expectancy.
Position Size · 8 min readPosition Sizing Explained: How Much to Risk per Trade
Fixed-fractional sizing, how stop distance sets your size, forex lots and pip value, and why consistent risk matters more than entries.
Profit & Loss · 6 min readTrading Profit and Loss: Gross vs Net, Fees and Break-Even
How to calculate P&L for long and short trades, why costs matter more than they look, and how to find your true break-even price.
Compound Growth · 8 min readCompound Growth in Trading: Why Drawdowns Hurt More
Arithmetic vs geometric returns, volatility drag, the asymmetry of losses and what realistic compounding looks like.