How to Use the Fixed Risk Calculator

What this calculator actually helps you understand

The Fixed Risk calculator exists for traders who want each idea to draw down no more than a specific cash amount. It translates “I only want to risk $500 on this trade” into the exact position size that respects that guardrail. Rather than predicting a price move, it makes the loss budget explicit so one trade cannot dominate performance.

Inputs explained (with realistic examples)

Account size: The live equity value you are sizing from (e.g., $50,000). Even if other trades are open, use the current balance—the calculator separately shows what % of the account the risk amount represents.
Symbol (optional): A text label that flows through to the trade plan export. Use it to keep journal entries readable.
Risk amount (cash): The maximum loss you accept if the stop is hit (for example, $400 ≈ 0.8% of a $50k account). The UI immediately displays the percent of account risked so you can sanity-check discipline.
Entry price: Your intended average fill (e.g., 125.40). Enter the price you expect to receive, not the last trade.
Stop loss price: The exact exit level if the trade fails. The calculator shows the stop distance as a % of entry so you can see whether the stop is realistic for the symbol’s volatility.
Setup notes (optional): Journal text that appears in the generated trade plan. Two sentences about structure or catalyst are usually enough.

Outputs: how to read the results

Shares to buy: The tool floors the share count so the loss at the stop stays within the cash risk. Treat it as a ceiling—round down further if liquidity is thin.
Position size and % of account: Shows total exposure and how much of the account it represents, making concentration easy to monitor.
Risk breakdown: Displays both the cash risk and the per-share risk, so you can compare trades quickly.
R-multiple scenario table (1R, 3R, 5R): Provides target price, profit, and total gain % for each multiple, helping you plan exits consistent with the risk budget.
Trade plan export: One click copies or exports the entire plan (entry, stop, risk parameters, actions) for journaling or compliance.

Common mistakes people make

Using a stale account size. After a significant win/loss, the percentage risk is no longer accurate.
Setting a stop so tight that normal price noise hits it, then blaming the calculator for “small” position sizes.
Treating the cash risk as a guarantee despite overnight gaps, halts, or illiquid symbols.

When this calculator is genuinely useful

When you already know the entry and stop but need an exact share count that honors your cash risk.
When you’re journaling trades and want consistent R-multiple scenarios embedded in the export.
When you need to communicate position sizing logic to a trading partner, coach, or compliance reviewer.

When this calculator can mislead you

When stops are unlikely to fill (illiquid names, event risk, pre-market orders).
When you assume rounding down shares removes all risk—partial fills or slippage can still push losses above plan.
When you ignore correlation: multiple trades sized “correctly” can still cluster if they move together.

How this fits into a broader financial decision

The Fixed Risk calculator handles a single dimension—loss sizing. You still need to confirm the trade fits your playbook, lines up with portfolio exposure limits, and respects liquidity/news risk. Many disciplined traders pair it with the Percentage Risk calculator to compare fixed-dollar vs % of equity sizing, or with ATR-based sizing to add volatility context.

Use the calculator

👉 Try the calculator here

Rules

Do not treat any scenario as personalized advice.
Stay conservative with inputs and double-check assumptions before acting.
Avoid country-specific tax or regulatory claims unless you verify them yourself.

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