How is fixed fractional sizing different from risking a fixed dollar amount?

A fixed dollar amount stays the same no matter what your balance does. Fixed fractional sizing recalculates the dollar amount every trade based on your current balance, so it automatically shrinks after losses and grows after gains.

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What position size does the fixed fractional method recommend based on my current account balance?

Q: What position size does the fixed fractional method recommend based on my current account balance?

Enter your current balance, your fixed risk fraction, and your stop-loss distance. The calculator divides your dollar risk (balance times fraction) by your stop distance to get a recommended share or unit count.

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Enter Your Numbers

Fixed fractional sizing recalculates your dollar risk off your current balance every trade, instead of using a fixed dollar amount forever.

Your Result

Fill in the fields on the left and click Calculate to see your recommended position size.

How this is calculated

Fixed fractional sizing risks a set percentage of your current account balance on every trade, rather than a fixed dollar amount. As your balance changes, the dollar amount at risk automatically changes with it.
Dollar risk equals your current balance times your chosen fraction. Position size equals that dollar risk divided by your stop-loss distance per share or unit.
If you enter a starting balance, the tool also shows what a trader still risking a fixed dollar amount from that original balance would be risking today, so you can see the difference fixed fractional sizing creates as an account compounds.
A common range for the fraction is 0.5% to 2% per trade. Larger fractions increase both the speed of account growth and the speed of a losing streak's damage.

Risk & liability disclaimer: This calculator performs simple arithmetic on the numbers you enter. It does not know your actual account balance, broker fees, or slippage, and does not guarantee any trading outcome. This is not financial advice. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Trading involves risk of loss.

What position size does the fixed fractional method recommend based on my current account balance?

Enter Your Numbers

Your Result

How this is calculated

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