Position Sizing Calculator

This calculator is for educational purposes only. Not financial advice. All trading involves risk. Always manage your own position sizing independently.

The Risk Management Playbook covers the 1–2% rule, R-multiple frameworks, position scaling, and how to set stop-losses using structure — not arbitrary percentages.

How to size positions like a professional crypto trader

The 1–2% rule is the foundation of professional position sizing: never risk more than 1–2% of your total account on any single trade. This rule ensures a losing streak — even 10 consecutive losing trades — doesn't wipe out your account. At 1% risk per trade, 10 losses in a row reduces your account by roughly 9.6%, not 10%, because each loss is calculated on a smaller base.

The R-multiple framework standardises every trade. 1R is the amount you're risking on a trade. A 2R win returns twice your risk. Before entering any position, know your 1R in dollar terms — that's what this calculator outputs as "Risk Amount." If a trade idea doesn't offer at least 1.5R upside, the math doesn't justify the risk.

Stop-losses should be placed at technically meaningful levels — below a recent swing low for longs, above a swing high for shorts — not at round-number percentages. The calculator derives your position size from your stop placement automatically: move your stop further away and your position size shrinks; tighten it and the position grows. The risk stays constant; the structure decides the size.

Implied leverage is a useful sanity check. In spot markets (leverage = 1×), your maximum position is your full account. On derivatives, many platforms allow 20× or 100× — but professional traders rarely use more than 3–5× effective leverage. If this calculator shows implied leverage above 5×, reconsider the stop-loss placement or reduce the risk percentage.