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Position Size Calculator

Risk stays constant even when stop distance changes

Traders repeatedly cite position sizing as where accounts "leak money": they size by emotion or conviction instead of tying size to a fixed risk amount and stop distance. This recipe forces sizing math pre-entry.

House RecipePersonal6 min setup

INGREDIENTS

🔔Notifications📄Google Docs

PROMPT

Create "Position Size Calculator". Require me to define either a stop distance (price/ticks) or an ATR-multiple stop. Default risk = $100 (or 0.5% of account if I provide balance). Compute size and output an entry + bracket template. Log inputs to the journal stub.

Pain point

Inconsistent position sizing makes results non-comparable and drawdowns hard to control.

Triggers

  • Before creating an entry order template

Conditions

  • Requires a defined stop distance (ticks/$/ATR)
  • Optional: cap leverage for high-volatility regimes

Actions

  • Compute size = riskBudget / stopDistance
  • Output an order template (shares/contracts) + bracket suggestion
  • Log the risk inputs for journaling

Parameters (defaults)

  • riskPerTradeUSD: 100
  • riskPerTradePercent: 0.5
  • usePercentOrUSD: "USD"
  • stopDistanceType: "ATR"
  • atrLength: 14
  • stopDistanceATR: 0.8

Examples

  • If risking $100 and stop is $0.50 away, size is 200 shares.
  • If ATR expands, size shrinks automatically to keep $ risk constant.
Tags:#trading#risk-management#position-sizing#process