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Tools

Position size calculator

Decide the loss first. The size falls out of the arithmetic.

1%A common risk per trade
0Numbers stored
$0To use
3Inputs that matter
Loading live prices
$Everything you are trading with, not your net worth
%One to two percent is where most people who last end up
$What you expect to pay
$Where you would admit you were wrong
Buy this manyTokens, at your entry price
Position valueWhat it costs to open
At risk if stoppedThis is the number you chose
Distance to stopHow far price has to fall
Position as share of account

Everything here is worked out in your own browser. Nothing you type is sent anywhere, stored, or logged, and there is nothing to sign up for.

The idea

Decide the loss first, then the size

Almost everyone does this backward. They decide how much of a token they want, buy it, and only find out what a bad day costs when they have one.

Turn it around. Decide what a single trade going wrong is allowed to cost you, in dollars. Decide where the price proves you wrong. The gap between your entry and that price is your risk per token, and the size falls straight out of the division. Your position gets smaller when your stop is far away and larger when it is close, which is exactly the right way round.

  1. Pick the risk, not the size

    One percent of a ten thousand dollar account is one hundred dollars. That is the most this trade can cost you. It does not change because you feel strongly about this one.

  2. Put the stop where the idea fails

    Under the support, under the structure, wherever the reason you bought stops being true. Not at a round number and not at whatever distance makes the size you already wanted.

  3. Divide

    Risk in dollars, divided by the distance from entry to stop, gives the number of tokens. That is the whole method.

  4. Check the position value

    If the answer needs more money than you have, the stop is too tight for your account. Widen the stop and take the smaller size, or skip the trade.

Take care

A stop only works if you actually use it. A calculated size with a stop you talk yourself out of is just a normal position with extra steps.

Worked through

What the default numbers mean

Ten thousand dollar account, one percent risk, so one hundred dollars at stake. Entry at $2.50, stop at $2.15, which is thirty five cents of risk per token. One hundred divided by 0.35 is 285 tokens, and 285 tokens at $2.50 is a position of about $714.

So a position worth seven percent of the account risks one percent of it. That gap between position size and risk is the part most people never see.

Common questions

What risk percent should I use?

Most people who are still trading in five years use one or two percent per trade. At one percent you can be wrong ten times in a row and still have ninety percent of your account. At ten percent, ten losses is everything.

Does this work for leveraged positions?

The size it gives you is correct either way. Leverage changes how much cash you need to open the position, not how much you lose when price hits your stop. If the position value comes out larger than your account, that is the tool telling you the trade needs leverage.

What if I am buying to hold, not trading?

Then you have no stop, and this is the wrong tool. Size a long term position by asking what percentage of your money you are willing to see fall eighty percent, because that has happened to every asset in this space.

Want a hand using these on your own position?

We go through it together on a call. Your holdings, your risk, your setup. You click everything and we never ask for keys.