About This Simulator

This tool simulates a trading plan based on two core principles: Money Management and Risk Management.

• Money Management: This is your high-level plan. It's represented by your "Initial Capital" and your "Daily Gain Target." You are compounding your capital by reinvesting your gains.
• Risk Management: This is your trade-level protection. It dictates *how* you try to achieve your gain target.
  • Daily Risk %: The maximum percentage of your *total capital* you are willing to lose in a single day (or trade).
  • Stop Loss %: The percentage drop *in your position* at which you automatically exit to prevent further losses.
  • Position Size: This is calculated for you. It's the amount of money you need to put into a position so that if your "Stop Loss %" is hit, you only lose your "Daily Risk %" amount.
    (Formula: Position Size = (Capital * Daily Risk %) / Stop Loss %)

Disclaimer: This is a simplified mathematical simulation that assumes you win 100% of your "Work Day" trades. Real-world trading involves losses, market volatility, and psychological factors. This tool is for educational purposes only.