Trading Risk & Position Size Calculator AI

Inconsistent position sizing and poor risk management lead to blown accounts. This skill enforces mathematical discipline by calculating exact trade parameters based on your account equity and technical setup.

What it does

• Position sizing calculates the specific quantity to trade based on risk budget and stop-loss distance.
• Risk budget mapping converts percentage-based or fixed-dollar risk into currency units.
• Directional logic handles both long and short setups with validated entry and exit sequences.
• Reward-to-risk analysis computes ratios for single or multiple price targets.
• Cost estimation incorporates brokerage fees, taxes, and slippage into the final loss projection when provided.
• Safety validation checks for negative risk distances, margin constraints, and invalid trade directions.

How it works

1. Input parameters such as account size, risk percentage, entry price, and stop-loss price are provided.
2. Formula execution calculates the risk per unit and determines the maximum quantity, rounding down to valid tradable units.
3. Verification checks the trade direction against price levels to ensure the stop-loss is placed correctly.
4. Detailed reporting generates a breakdown of capital requirements, planned loss, and potential reward.

Frameworks & tools

This tool uses standard mathematical formulas for equity risk management. It supports various asset classes including equities, forex, and derivatives through lot size and contract multiplier adjustments.

Why this beats prompting it yourself

Standard prompts often fail to round quantities down to tradable units or ignore the distinction between price-risk and cost-inclusive loss. This skill strictly follows directional logic to prevent calculation errors on short positions and flags setups where stop distance is too wide for the budget.

Use cases

• Calculate stock share counts for a fixed 1% account risk setup.
• Determine lot sizes for forex pairs based on pip-distance stop-losses.
• Evaluate reward-to-risk ratios across multiple take-profit targets.
• Estimate all-in trade costs including commissions and expected slippage.

Known limitations

Does not provide live market data or fee schedules. Cannot guarantee realized loss limits due to market gaps or execution failures. Does not perform margin calls or automated order execution.