Recovery calculator: fixed risk, higher reward
This calculator shows the maths behind a fixed-risk, higher-reward approach to options buying. A trade is taken only when a valid setup appears, always with a fixed 10% stop-loss and a much bigger target. To stay conservative, it assumes only 1 in 4 setups reaches its target and the other 3 exit at the stop-loss. Enter your own numbers to see how it works.
1. Fixed 10% stop-loss, bigger targets
In options buying, one setup that works can pay many times what a stop-loss costs. So even if only 1 in 4 setups works, the gains can cover the losses and grow.
Fixed rules: trade only on a valid setup · 10% stop-loss on every trade · 1 in 4 setups reaches the target (25%) · gains are reinvested in the next trade.
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| Capital reached | After |
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Hypothetical maths based on the numbers you entered. Not a prediction or a promise of profit.
2. The maths of losses
The more you lose, the harder it is to get back. That's why protecting what you have left comes first.
| If you lose | You need to gain |
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This is a learning tool, not a promise of profit. It shows hypothetical maths based on the numbers you enter. Real results depend on finding valid setups, following every rule, and market conditions. It doesn't include brokerage, taxes or slippage. MarketGuide Trading Academy provides trading education only, not tips or investment advice.
Also try: How many lots should I trade? → Intrinsic value calculator → See all free tools →