Capital Preservation
Bitcoin Position Size & Risk Calculator
Calculate the exact mathematical position size for your trade so you never risk more than your predefined tolerance.
Trade Sizing Parameters
Total portfolio trading capital
Recommended: 1.0% - 2.0% max
Your planned buy or sell price
Price where the trade idea is invalidated
Mathematical Execution Plan
Max Allowed Loss ($)
$100.00
Stop Loss Distance (%)
4.00%
Suggested BTC Quantity
0.0385 BTC
Total Position Value ($)
$2,500.00
The Golden Rule of Position Sizing
Never determine your trade size based on how much money you want to make. Instead, determine your trade size exclusively based on how much you are willing to lose if the setup fails.
Core Risk Guidelines
- 1% - 2% Account Rule: Never allow a single stop loss to exceed 2% of total equity. This guarantees survival through 10 consecutive bad trades.
- Wider Stops $\ne$ Bigger Losses: If volatility demands a wider stop loss, simply reduce your BTC position size so your dollar risk remains unchanged.
- No Revenge Trading: If you take two full losses in a single trading session, step away from charts for at least 12 hours.