Module 4 — Risk and position size
Decide how much you accept to lose before deciding how much to buy, and read results in R multiples.
Free course · Beginner → Intermediate · 24 min
Module 4 — Risk and position size
Decide how much you accept to lose before deciding how much to buy, and read results in R multiples.
Lesson 1 of 2 · 12 min
OBJECTIVE
Risk per trade and position size
Position size is chosen from the loss you accept if the stop is hit, not from how confident you feel.
LEARNING VISUAL
Learning diagram: Risk per trade and position size
Concrete example
Capital 2,000 USDC, risk 1% = 20 USDC. Entry 0.50, stop 0.45: distance 0.05. Size = 20 ÷ 0.05 = 400 tokens, a 200 USDC position. The position is 10% of capital, but the planned loss is 1%.
Practical checklist
- Fix the risk amount first
- Measure the entry-to-stop distance
- Compute the size, then add costs
Mini quiz
With 1,000 USDC of capital, 1% risk and a 0.10 stop distance, the size is…
Answer the mini quiz correctly to validate this lesson and continue.
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