Risk management and position sizing
What separates a profitable trader from a lucky one is risk management, not direction-picking. Here size is calculated from risk — never the other way around.
Position size from risk percentage
Give it your balance, your risk percentage and the entry-to-stop distance, and the correct size comes out. The order matters: size must follow from the stop distance, rather than picking a size first and then putting the stop wherever it happens to fit.
Risk-to-reward and the 1% rule
Risking 1% per trade means ten losses in a row is roughly 10% of the account — recoverable. Each trade's R:R is shown before entry so you know what reward is on the table for that risk. The usual first target is R1: when profit equals risk, close half and move the stop to entry.
The risk guard
The risk guard exists to block emotional decisions: set a daily loss cap and a maximum trade count, and get warned when you reach them. The biggest losses tend to come right after a big loss, when a trader is chasing it back.
Who it is for
- Anyone trading a live account
- Anyone inside a prop challenge with a drawdown limit
- Traders who lose control after a loss
Frequently asked questions
How much should I risk per trade?
The common rule is 1% or less; inside prop challenges usually less.
What does R mean?
R is your unit of risk: what you lose if the stop is hit. A 2R win is twice that amount.
Does the calculator work for gold?
Yes, for gold and every supported symbol.