Most traders size their positions BACKWARDS. They pick how many coins they want, then guess a stop.
Flip it. Start with the stop, and the size falls out of the math.
The rule: Position size = (account × risk %) ÷ (entry − stop)
Real numbers from the last 24h:
$BTC trades near $74,811 with a 24h low of $73,510. A stop just under that low is ~$1,301 away (1.7%).
$10,000 account, 1% risk = $100.
$100 ÷ $1,301 = 0.077 BTC, about a $5,750 position.
$SOL sits near $87.37, 24h low $85.02. Stop distance $2.35 (2.7%).
$100 ÷ $2.35 = 42.5 SOL, about $3,718.
Same $100 at risk, very different position sizes. SOL's 24h range was 5.7% vs BTC's 3.6%, so the wider stop forces a smaller bag. That's the point: volatility decides your size, not your conviction.
Three habits that keep you alive:
• Keep risk per trade at 0.5–2% of the account
• Never widen the stop to "fit" a bigger size
• Smaller caps like STRK or HYPE swing harder, so expect smaller positions there
Do you size by risk, or by gut feeling?
Not financial advice.
#PositionSizing #RiskManagement #CryptoTrading
Flip it. Start with the stop, and the size falls out of the math.
The rule: Position size = (account × risk %) ÷ (entry − stop)
Real numbers from the last 24h:
$BTC trades near $74,811 with a 24h low of $73,510. A stop just under that low is ~$1,301 away (1.7%).
$10,000 account, 1% risk = $100.
$100 ÷ $1,301 = 0.077 BTC, about a $5,750 position.
$SOL sits near $87.37, 24h low $85.02. Stop distance $2.35 (2.7%).
$100 ÷ $2.35 = 42.5 SOL, about $3,718.
Same $100 at risk, very different position sizes. SOL's 24h range was 5.7% vs BTC's 3.6%, so the wider stop forces a smaller bag. That's the point: volatility decides your size, not your conviction.
Three habits that keep you alive:
• Keep risk per trade at 0.5–2% of the account
• Never widen the stop to "fit" a bigger size
• Smaller caps like STRK or HYPE swing harder, so expect smaller positions there
Do you size by risk, or by gut feeling?
Not financial advice.
#PositionSizing #RiskManagement #CryptoTrading