The order that sizes a position
① Decide the share of the account you accept losing on one trade (say 1%). ② Choose the stop. ③ Quantity = allowed loss ÷ (entry-to-stop distance + fees). With a 10,000,000 account, 1% risk, entry 50,000 and stop 47,000 the allowed loss is 100,000 and the per-share loss is 3,000 — about 33 shares.
Reading the result
- Capital deployed and weight: the tighter the stop, the more shares the same risk buys, so weight rises. If it gets too big, loosen the stop distance or cut the risk percentage.
- Actual risk: whole shares are rounded down, so real risk is a little below your target.
- Profit per target: net of fees at 1R, 1.5R, 2R and 3R above entry.
Caveat
Gaps and slippage can fill you worse than the stop, so real losses may exceed the calculation. The tool does not guarantee safety; it helps you follow a rule.
FAQ
Why size from the stop instead of a fixed amount?
The same amount can lose very different sums depending on stop distance. Fixing the allowed loss keeps risk constant.
What risk per trade is reasonable?
0.5–2% is common, but pick a number you can survive a losing streak at.
Does it handle shorts?
Choose Short and enter a stop above the entry.
What about futures?
Use the futures liquidation & position size calculator for leverage and liquidation distance.