No. 07Risk & leverage
Position size calculator.
Risk the same slice of your account on every trade — and size each position to match.
Position size
0.1
Notional
3,000 USDT
Amount at risk
100 USDT
Method
How risk-based sizing works
Risk-based sizing fixes the loss you'll take if the stop hits - a set fraction of equity - and works backward to a quantity: qty = (equity x risk%) / |entry - stop|.
Because the size adapts to the stop distance, every trade risks the same amount whether the asset trades at $0.50 or $50,000. The notional that quantity controls follows from the entry price.
Questions
Frequently asked
- Why size a position off the stop-loss?
- Because risk is defined by where you're wrong, not by how much you deploy. Fixing the loss when the stop hits at a set percent of equity, then dividing by the entry-to-stop distance, keeps every trade's downside equal regardless of the asset's price or volatility.
- What risk percentage should I use?
- Most disciplined traders risk 0.5-2% of equity per trade. Lower survives losing streaks better; 1% is a common default. Use the calculator to see how position size scales with the percentage.
- Does leverage change the position size?
- No. Risk-based sizing depends only on equity, risk percent, and the entry-to-stop distance. Leverage only determines how much margin that position locks up, not how many units you should hold.
- What if entry equals the stop?
- The risk per unit is zero, so the size is undefined (it would imply an infinite position). Set the stop a meaningful distance from entry.
Try
Turn risk rules into a backtestable strategy.
Quantle sizes positions, models leverage, and runs a full walk-forward backtest. Free during beta.
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