How professionals use this
- Define risk in dollars first. Size comes from the stop distance, not conviction.
- Keep risk constant. If the stop is wider, size smaller - your $ risk stays stable.
- Plan the invalidation. The stop is where your thesis is wrong - not where it feels uncomfortable.
- Use R. Evaluate outcomes in R-multiples for consistent decision-making.
Inputs
Outputs
Max risk (CAD)-
Stop distance-
Shares-
Position notional-
Risk per share-
Target R (if set)-