Is your edge real, or just variance?

A good week feels like skill and a bad week feels like a fluke, but the only way to know is to test it. This calculator treats each of your trades as a coin flip weighted by the price you paid, the market's implied probability, and measures how far your actual results land from that baseline.

Enter your record and you'll get an edge in percentage points, a significance score (z), and a plain verdict: real edge, real leak, promising, or just variance. It's the fastest way to answer the question every serious trader asks.

Your win rate
58.0%
Edge vs price paid
+8.0 pts
Significance (z)
2.26
p = 2.4%
Real edge (statistically significant)
Your win rate is 8.0 points above the prices you paid, and that's unlikely to be luck (about a 2.4% chance a no-edge trader does this well).

This treats each trade as a coin flip weighted by the price you paid, the market's implied probability, then measures how far your actual wins land from that baseline. It's a quick estimate using one average price; for the real thing, broken down by price band with your own data, run the Edge Lab.

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How it works

If you buy contracts at an average price of 50 cents, the market expects you to win about half of them. Win a lot more than that across enough trades and it becomes statistically unlikely to be luck. The calculator computes the expected wins from your average price, compares your actual wins, and expresses the gap as a z-score.

A z of about 2 or more (roughly a 5 percent chance of happening by luck) is the usual bar for calling an edge real. Below that, the honest answer is that you can't yet distinguish your results from chance, no matter how good they feel.

Why sample size matters

The single biggest mistake traders make is trusting a small sample. Thirty trades tell you almost nothing; the swings from pure luck are enormous. Around a hundred trades the signal starts to firm up, and by several hundred a real edge becomes hard to hide. If the tool says your sample is too small, that's not a dodge, it's the truth.

The flip side: a real leak also needs a sample to prove. If the calculator flags a significant leak, it's worth taking seriously, because that pattern survived the same test your wins would have to.

FAQ

How do I know if my Kalshi edge is real?
Compare your actual win rate to the average price you paid across a large enough sample. If you win significantly more often than the prices implied, quantified by a z-score around 2 or higher, it's unlikely to be luck. Below that, it can't be distinguished from variance.
How many trades do I need to prove an edge?
More than most people think. Thirty is far too few; luck dominates. Around a hundred the signal starts to firm up, and several hundred trades make a real edge hard to hide. Small samples simply can't separate skill from chance.
What is a good z-score for a trading edge?
A z-score of about 1.96 or higher corresponds to roughly a 5 percent chance the result happened by luck, the common bar for statistical significance. Higher is stronger evidence. Between 1 and 2 is promising but unproven.
Does this replace analyzing my full history?
No, it's a quick estimate using one average price. For the real analysis, broken down by price band, with tilt and sizing checks on your own uploaded trades, use the Edge Lab. This tool is the fast first look.
Stop calculating one trade at a time
ContractTax does this across your whole Kalshi history: real P&L, a Sharp Score that rates your edge, and your tax numbers under every treatment.
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RELATED READING
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SEE IT LIVE
See the full Edge Lab
Whether your edge is real, broken down by price band, on real data.
These tools are for education and estimation only, not financial or tax advice. Fee estimates use Kalshi’s standard formula and may differ from your actual fees.
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