Keep everything except distance fixed
Use a fictional $10,000 account, a 1% planning percentage and a $100 long entry. The resulting modeled budget is $100. These are teaching inputs, not suggested settings for a real account or a recommended loss limit.
The position tool divides the budget by the absolute entry-to-stop distance. Units and notional are separate outputs: units describe quantity, while notional is quantity multiplied by entry price. Costs and execution quality are outside this formula.
Evidence: CryptoTrades position size calculator
Compare three hypothetical stops
At stops of $90, $95 and $98, the distances from the $100 entry are $10, $5 and $2. Dividing the same $100 budget by each distance gives 10, 20 and 50 units respectively.
Multiplying by the entry gives $1,000, $2,000 and $5,000 of notional. Read across a row rather than treating the three output columns as three kinds of loss. Each row models the same pre-cost budget only if its specific stop-price assumption holds.
| Stop | Distance | Units | Entry notional |
|---|---|---|---|
| $90 | $10 | 10 | $1,000 |
| $95 | $5 | 20 | $2,000 |
| $98 | $2 | 50 | $5,000 |
Evidence: CryptoTrades position size calculator
Stress the same one-dollar adverse difference
Suppose each example exits $1 below its modeled stop instead. Price losses become $110 for the 10-unit example, $120 for 20 units and $150 for 50 units. The extra loss is quantity multiplied by that extra dollar.
This is an invented sensitivity exercise, not a forecast of slippage or a distribution of trading outcomes. It shows why preserving the formula’s budget does not guarantee preserving realized losses. No probability of any exit price has been estimated.
| Modeled stop | Assumed exit | Price loss |
|---|---|---|
| $90 | $89 | $110 |
| $95 | $94 | $120 |
| $98 | $97 | $150 |
Check direction and funding limits
For an illustrative short entry at $100 with stop $105, distance is $5 and the same budget returns 20 units. The arithmetic symmetry does not mean equal practical risk: this calculator does not model borrowing, margin or liquidation.
The tool rejects zero distance and a stop on the incompatible side of entry. A calculated notional greater than the account balance triggers a warning, not an automatic cash-only cap. Do not interpret a numerical output as confirmation that a position can be funded.
Evidence: CryptoTrades position size calculator
Use the results to describe assumptions
Change one input at a time, then note what stayed fixed. Include the chosen direction, currency, entry, stop and excluded costs beside any copied result. This makes the exercise reproducible without implying that the tool selected a suitable trade.
To interpret the examples, read the existing risk-budget and calculator guides. For an actual product, verify stop behavior independently. A smaller modeled distance alone says nothing about volatility, fill quality, the likelihood of a trigger or whether a trade should be taken.
Sources & method
- CryptoTrades position size calculator
Formula, supported direction and validation checked against the current implementation. No exchange orders were placed. Checked 2026-10-28.
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