Your settings
Stock position (or any asset priced per unit).
Your position
Size calculated to never exceed the set risk level.
Maximum loss if stop is hit
-
Potential gain if target is reached
-
Warning: simulation for informational purposes only, not advice. Trading involves the risk of capital loss. A stop-loss is not guaranteed in case of high volatility (slippage, gaps).
The formulas used
- Risk in euros = capital x (% risk per trade)
- Risk per share = absolute value of (entry price - stop-loss price)
- Position size = risk in euros / risk per share
- Maximum loss = size x risk per share (close to accepted risk)
- Risk-to-Reward Ratio = (target - entry) / (entry - stop)
Example: capital 10,000 €, risk 1% (100 €), entry 100 €, stop 95 € (5 € of risk per share) gives 20 shares, or 2,000 € invested for a maximum loss of 100 €.
