Day Trading Income Calculator
Four inputs. Your trading expectancy, in dollars.
Your trading profile
Your daily average. Fractional values are fine.
The percentage of trades that finish as winners.
Average win ÷ average loss. 2× means wins are twice as large.
Dollar risk, treated here as the average loss on a losing trade.
A note on the name: the video calls average win ÷ average loss a “Sharpe ratio”. Here it is labelled win/loss ratio. The standard Sharpe ratio compares excess returns with volatility. Definition ↗
Where does the math break even?
With a 2× win/loss ratio, 33.3% wins offsets the losses before costs. More trades or more risk scales the result; it does not change this threshold.
The numbers are assumptions.
James’s point is that opportunities and follow-through change with the market. More risk can also change how you trade, so the other inputs may not stay the same.
This model assumes each losing trade loses the entered risk. It uses a fixed 250-day year with no compounding, fees, slippage or taxes. It is an educational estimate, not a forecast or financial advice.
Plan the share size for your risk