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Edge calculator

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Model parameters

Entered values stay only in this tab's memory and are not sent to the URL, storage, or analytics. The calculator does not ask for account capital or position size.

Probability of a negative outcome
1.822×10^-66 %
Normal approximation, for reference: 5.119×10^-64 %

Negative outcome with at most 249 wins

Exact binomial calculation

Expectancy per trade
1.08 R
Expected total
1080.00 R
Kelly criterion f*
36.00 %
The same probability in expanded form
0.000000000000000000000000000000000000000000000000000000000000000001822 %

Putting the number in context

NASA considers no known asteroid a significant impact risk over the next 100 years. These probabilities come from different models and are not compared numerically.

NASA source

What the model does not include

  • Trades are assumed independent, although real outcomes cluster by market regime.
  • Win rate and R are assumed constant; even a 1–2 pp estimation error changes the tail sharply.
  • A trade has only two outcomes, +R or −1R; gaps, partial exits, and slippage are excluded.
  • Fees are excluded, and only the final sum is modeled, not drawdown along the path.
  • Additive R units are not percentages of capital; Kelly is growth-optimal, not a safe position size.
  • An extremely small number is exact only within the model; input-estimation error matters more than dozens of result digits.

Educational model. Not individualized investment advice.

What the calculator measures

The calculator finds the probability of ending exactly N trades with a negative sum in R, given a fixed win rate and reward-to-risk ratio.

This is not risk of ruin, path drawdown probability, or a forecast of account returns.

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Formulas on this page

  • The strict event is S_N < 0, not S_N ≤ 0.
  • The exact binomial tail is computed in log space.
  • Expectancy is shown per trade and for the full horizon.
  • Kelly is shown separately and is not trading advice.

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