position-sizing

What problem does it solve?

This Skill addresses the critical risk management challenge of determining the optimal size for each trade to ensure capital preservation and maximize long-term growth.

Core Features & Use Cases

• Multiple Sizing Methods: Implements Fixed Fractional, Volatility-Adjusted, Kelly Criterion, and Liquidity-Constrained sizing.
• Risk Management: Provides tools to calculate position size based on account risk, market volatility, statistical edge, and token liquidity.
• Use Case: A trader can input their account size, entry price, stop loss, and market data to receive a recommended position size that balances risk and potential reward according to various proven methodologies.

Quick Start

Calculate the position size for a trade with an account size of $10,000, entry price of $1.50, and stop loss of $1.30, risking 2% of the account.