FREE GUIDE 02
Make risk a number,
not a feeling.
A lightweight worksheet for turning a defined maximum loss into a position size. Keep leverage, fees and liquidity in your own plan.
Position-size worksheet
Illustrative position size
—Calculated as (capital × risk %) ÷ absolute entry-to-stop distance. This excludes fees, slippage and leverage.Before you use the result
- Set the maximum loss first. Never increase it just to make a trade fit.
- Check that the stop level is technically meaningful, not simply convenient.
- Account for fees, spread, slippage, funding and the possibility of a gap.
- Reduce size when the market is unusually volatile or liquidity is thin.
- Write down what would invalidate the idea before opening the position.