Consecutive Loss Risk Calculator

Six-step workflow

1. Copy current values from the official account, platform, or journal.
2. Keep every unit consistent; do not mix ticks, points, pips, dollars, or percentages.
3. Enter the planning assumptions without changing them to force a preferred answer.
4. Calculate and read every output, including the warning below the headline number.
5. Verify instrument specifications and binding firm rules at the official source.
6. Save the result with its date and compare it with what actually happened.

Understand the output

Formula: Percentage mode compounds risk from the declining balance. Fixed mode subtracts the same dollar amount for every loss.

Worked example: Eight losses at 0.5% of current balance reduce $50,000 to about $48,035, a 3.93% drawdown before costs.

Common mistakes: testing only three or four losses, omitting costs, assuming losses are independent, and raising risk during recovery.