How much of my trading return comes from skill instead of just leveraged market exposure?
Enter Your Return and Exposure
Your Result
Fill in the fields on the left and click Calculate to see your estimated edge.
How this is calculated
This multiplies the benchmark return by your average leverage or beta multiplier to estimate what plain market exposure alone would have produced.
Your actual account return minus that estimate is treated here as the piece attributable to trade selection and timing rather than simple leveraged exposure.
The beta multiplier is your own estimate, not a measured statistic. Leveraged compounding also behaves differently from this simplified straight-line estimate over volatile periods.
This calculator does not include commissions, spreads, taxes, or borrowing costs, all of which reduce actual results further.
Risk & liability disclaimer: This calculator performs simple arithmetic on the return figures and multiplier you enter. It is a rough estimate, not a formal performance attribution, and it does not account for commissions, taxes, borrowing costs, or the path-dependent effects of leveraged compounding. Past performance is not a guarantee of future results. This is not financial advice. Trading involves risk of loss. Trading Habits is not a broker-dealer or registered investment adviser.
Leverage Can Look Like Skill Until the Market Turns
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