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Beginner Risk Simulator

Test how bankroll size, position risk, trade count and win/loss sequences can affect drawdown in a simple prediction-market learning model.

Event contract tool

Stress-test a simple bankroll plan before you think about real event contracts. Change the bankroll, risk size, trade count, and win/loss path to see how drawdown can happen even when the math looks reasonable.

  • No external APIs
  • Educational sizing model
  • No profit forecast
  • Last updated July 23, 2026

Scenario inputs

Live simulator
$500

The model treats this as the amount reserved for learning, not money you can afford to lose.

3%

Each loss subtracts this percentage of the current bankroll.

20

More attempts give more chances for a losing streak to appear.

0.8R

A 0.8R win adds 80% of the amount risked on that trade.

Use the stress tests to see how timing changes the equity curve.

Optional. Enter W and L characters. The simulator repeats the sequence until it reaches the selected trade count.

Projected path

20 trades
Final bankroll $0 After the selected sequence.
Net change $0 Versus starting bankroll.
Max drawdown 0% Largest drop from a prior equity peak.
Worst streak 0 losses Consecutive losses in this path.
Bankroll path and drawdown visualization Line chart showing the simulated bankroll after each trade and drawdown bars below prior peaks.
MeasureValueWhy it matters
This model shows position sizing risk, not prediction skill. It ignores fees, liquidity, slippage, platform rules, taxes, and settlement timing.

How to read the simulator

A beginner risk plan should survive ordinary mistakes and losing streaks. The useful question is not only whether the final number is positive. It is whether the path would be psychologically and financially tolerable while the trades are unfolding.

  • Risk per trade is the amount the model subtracts on a loss.
  • Average winning trade is measured in risk units, so 1R means a winning trade adds the same amount that was at risk.
  • Max drawdown shows the largest percentage drop from the highest prior bankroll level.

Risk simulator FAQ

Does this predict real trading results?

No. It is a simplified learning model. Real event contracts can include spread, fees, changing liquidity, platform rules, settlement delays, and full loss of a position.

Why does a small risk percentage still matter?

Small losses compound when they arrive in a cluster. The same win rate can feel very different depending on whether the losses arrive early, late, or evenly spaced.

What should beginners do with this output?

Use it to understand exposure and drawdown before using real money. This page is educational only and is not financial, investment, legal, or tax advice.

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