Position Size Calculator
Input your stop loss and risk appetite to calculate exactly how many tokens to buy.
Position Sizing Output
Why Position Sizing Matters More Than Picking Coins
Most losing traders do not lose because they picked the wrong direction — they lose because they bet too much on a single trade. A strategy with a 60% win rate will still blow up your account if you risk 50% each time: two consecutive losses wipe out 75% of your capital. Risk 2% per trade instead, and after 10 consecutive losses you still have 82% of your account.
Professional traders follow the "1% rule": no single trade should risk more than 1-2% of total capital. This is not being conservative — it is the only mathematical approach that keeps you alive over a long enough timeline.
How to Use This Calculator
Enter three inputs: your total account balance, the maximum percentage you are willing to lose on this trade (typically 1-2%), and the gap between your entry price and stop-loss price. The calculator tells you exactly how many tokens to buy.
Example: $10,000 account, 1% risk tolerance (max loss $100), entry at $50,000 with stop-loss at $48,000 (gap $2,000 = 4%). Position size = $100 / $2,000 = 0.05 BTC, or a $2,500 position. Far less than your full account — that is discipline in action.
FAQ
Why limit single trade risk?
If you lose 50% of your capital, you need a 100% gain just to break even. Keeping your risk limited to 1-2% of your account per trade ensures survival through losing streaks.
What does the 1% rule mean in trading?
The 1% rule means no single trade should lose more than 1% of your total account. With a $10,000 account, your maximum loss per trade is $100. This rule does not limit position size directly — it limits the combination of position size and stop-loss distance. You can take a large position with a tight stop, or a small position with a wide stop. The math ensures you survive a losing streak either way.
Is position sizing different for futures vs spot trading?
The principle is identical, but futures trading amplifies risk through leverage. With 10x leverage, a 10% adverse price move triggers liquidation. So futures positions should be smaller than spot positions for the same account size. When using this calculator for futures, enter only the margin you have allocated for trading — not your total assets.
Where should I place my stop-loss?
Your stop-loss should sit at the price level where the trade thesis is proven wrong — not at the point where you have lost the most you can afford. If you are long on a coin with support at $48,000, place the stop just below support (e.g., $47,500). Then use this calculator to determine your position size given that stop distance. If the resulting position is too small to be worth trading, the risk-reward ratio on this particular setup is not good enough — skip it.
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