Trading

Position size calculator.

Risk amount is the account times the percent you choose. Size is that amount divided by the gap between entry and stop. Fill in a take-profit if you want the R-multiple.

Account and prices

One percent of a $10,000 account is $100 of stop distance.

Enter account, risk, entry and stop, then calculate.

A stop above entry is treated as a short. Size is in units of the instrument (shares, coins, contracts) — round down if your venue only fills whole shares. Fees, slippage and gaps are not modelled. Not financial advice.

Method

The formula.

  1. Enter the account size.
  2. Choose the percent one losing trade may cost — often 0.5% to 2%.
  3. Entry and stop: the absolute difference is the risk per unit. Size is the risk budget divided by that difference.
  4. Optional take-profit: the calculator reports the R-multiple and the dollar reward at that size.
Next

Games and the backtester.

FAQ

Questions, answered.

How do I calculate position size?

Risk amount = account × (risk percent / 100). Risk per unit = |entry − stop|. Position size = risk amount / risk per unit. A long uses a stop below entry; a short uses a stop above it.

What is the 1% rule?

A common starting point is to keep one losing trade to about 1% of the account. You can type any percent here.

What is an R-multiple?

R is the dollars you chose to risk on the trade. A 2R target is twice that distance beyond entry, so a win of 2R pays two times a 1R loss.

Is this financial advice?

No. See the Terms. The numbers come from what you typed. Fees, slippage and gaps are not modelled. Paper-trade in CryptoSim or CandleDirect.