Understanding Risk Reward & Position Sizing is a MUST to become a profitable trader

PriceActionTracker's Calculator will help you maximize your return and limit your risk.

Account Size: (in counter currency)
% of account you want to risk:
Entry:
Stop Loss:
Profit Target 1:
Profit Target 2:
Calculation Results
Quantity:
Position Value:
Target 1 Profit / Risk Ratio:
Target 2 Profit / Risk Ratio:
Profit Target for a 2/1 Ratio:
Profit Target for a 3/1 Ratio:

 

BEFORE entering any trade you should ALWAYS know how much you are going to risk and what your possible reward is going to be. If you do not understand this principle you will NEVER become a profitable trader.


Our Position Size Calculator will allow you to decide if a trade is worth to take, when to enter it and what should be the right position sizing.

Pre-Trade Checklist

How much do you want to risk on that trade? Money management is key to become a successful trader.


Find a logical and safe place to put your stop loss so that the probability of it getting hit is as low as possible, you want to give the trade as much room as possible to work out while still maximizing your risk to reward scenario.


Set a REALISTIC profit target, always choose a price level that makes sense in the overall context of your trade (Previous H/L and Major support/resistance levels).

 

Pick your entry level.


Use our calculator to see if your Profit/Risk ratio is worth taking that trade. IF your Profit/Risk ratio is lower than 2:1 you may want to skip that trade or amend your Entry point in order to get a much better Profit/Risk ratio (example: You may choose to enter on a 50% retrace instead of a market entry).

 

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