Position size and risk
Level: Intermediate 4 minutes · Last reviewed on Oct 13, 2026
The decides how much you buy. A proven approach starts from the : if the stop is hit, only a fixed share of the capital may be lost, such as 1%. The number of shares is then the risk amount divided by the distance to the stop. Even good rules have losing streaks. The simulator shows how long they can get with your and what that means for the .
Things to try
- Halve the distance to the stop: how does the number of shares change?
- Set the share of winners to 40%: how long does the longest losing streak get?
- Compare the drawdown at 1% and 5% risk per trade.
Quick check
See the share calculator in a chart →
Educational content, not investment advice. Trading involves the risk of loss, up to a total loss. Risk notice