How it works. Position size = (Capital × %Risk) ÷ (Stop Loss × $/pip). Reward $ = Lots × Take Profit × $/pip. Net $/Month = (Wins × Reward $) − (Losses × Risk $). Compounded balance assumes the same monthly % return is reinvested for 12 months. Default $10/pip matches a standard FX lot - change it for futures (e.g. GC $10/tick, ES $12.50/tick, CL $10/tick) or your own instrument. This is an educational tool, not personalised financial advice.