How is this calculated?

For each consecutive loss, the balance is reduced by the risk-per-trade percentage of the current balance for the 1x path, and by that same percentage multiplied by the leverage factor for the leveraged path, compounding down loss by loss for the chosen number of losses.

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What happens to my account if I trade on margin leverage during a losing streak instead of cash only?

Q: What happens to my account if I trade on margin leverage during a losing streak instead of cash only?

Simulates a chosen number of consecutive losing trades at 1x versus a chosen leverage multiple, showing the compounding balance decline and the extra dollar loss caused by trading leveraged during the streak.

Set Up the Scenario

This models a hypothetical losing streak you choose the length of. It does not predict whether you will actually experience one, or when.

Your Result

Fill in your scenario, then click Run the Comparison to see the extra loss from trading leveraged during a losing streak.

How this is calculated

This assumes each loss reduces the balance by the same percentage of whatever the balance is at that point, compounding downward, the same approach used in the other loss-streak simulators on this site.
Leverage multiplies both gains and losses. This tool only models the loss side, on purpose, since managing the downside is the harder problem during a losing streak.
Margin also carries interest costs and can trigger a margin call before a losing streak plays out this cleanly. See the margin call and margin interest calculators below for those numbers.
This is a mathematical projection based on the inputs you choose, not a prediction of how an actual losing streak will unfold.

Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Trading involves risk of loss, and past position sizing decisions do not predict future results. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation - always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.

What happens to my account if I trade on margin leverage during a losing streak instead of cash only?

Set Up the Scenario

Your Result

How this is calculated

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