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Risk & sizing · free, no login

Risk-per-Trade Ladder

Where 20 straight losses actually leaves you.

Equity after 20 straight losses$8,179.07
Total drawdown after 20 losses18.2%
Losses to reach −50%69
After 5 losses$9,509.9
After 10 losses$9,043.82
After 15 losses$8,600.58

Fixed-fractional sizing never mathematically reaches zero — but broker minimum sizes and psychology do not obey the math.

Educational tool only — not financial advice. Verify figures with your broker.

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What is the Risk-per-Trade Ladder?

The Risk-per-Trade Ladder is a free fixed-fractional drawdown tool that traces what a losing streak does to your account balance. It answers one blunt question: if you risk a fixed percentage of equity per trade, where do 20 straight losses actually leave you — and how many consecutive losses it takes to cut your account in half.

How to use it

  1. Enter your Account equity ($) as your starting balance (default is $10,000).
  2. Set Risk per trade (%) — the fixed fraction of current equity you risk on each trade (default 1%).
  3. Enter Losses to model to set how deep the ladder runs (default is 20 straight losses).
  4. Read Equity after 20 straight losses and Total drawdown after 20 losses for the headline damage, and Losses to reach −50% for how many consecutive losses halve the account.
  5. Use the After 5, After 10 and After 15 losses rungs to see the drawdown curve flatten as each loss is taken on a smaller balance.

How it's calculated

This models fixed-fractional (percent-of-equity) sizing: each loss is taken on the balance that survived the previous loss, not the original starting equity. So equity after N losses is the starting equity multiplied by (1 − risk%) raised to the power N — a compounding decay rather than a straight-line subtraction. That's why the drawdown slows as losses pile up, and why Losses to reach −50% is found by solving how many multiplications of (1 − risk%) drop equity below half.

Frequently asked

What happens to my account after 20 losing trades in a row?

With fixed-fractional sizing, less than you might fear — at 1% risk per trade, 20 straight losses leave roughly 82% of your equity, because each loss is taken on a shrinking balance. This risk-per-trade drawdown ladder shows the exact figure for your inputs.

How many consecutive losses does it take to lose 50% of my account?

It depends on your risk per trade. At 1% per trade it takes about 69 straight losses to halve the account; at higher fixed fractions it happens far faster. The ladder computes the exact count for your risk percentage.

Why doesn't fixed-fractional sizing ever reach zero?

Because you always risk a percentage of what's left, not a fixed dollar amount, so each loss removes a smaller absolute sum. Mathematically the balance approaches zero without touching it — but broker minimums and human psychology don't follow that math.

Keep in mind: The ladder shows only the arithmetic of fixed-fractional sizing, which never mathematically reaches zero — but that is not reassurance. Broker minimum trade sizes, margin rules, and the psychological toll of a long losing streak all impose real floors the math ignores, and nothing here implies the account will recover or profit.

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