LV VISUAL
Risk before entry
Turn a trade idea into a measurable position size before you execute.
risk $ / stop % = position
Capital
available base
Risk
1-2% + stop
Size
resulting notional
Risk desk
Risk & Size Calculator
The most important tool for your survival. Calculate your exact position size and institutional liquidation point.
Risk Score
14
Safe
Max Loss
$100.00
Pos Size
$5,000.00
Exposure
$25,000.00
Liq. Dist
20.0%
Survival Manual
1
“Risk per trade: 1-2% of total capital.”
2
“Set your Stop Loss before entering.”
3
“Leverage only magnifies your mistakes.”
Mathematics of Ruin
The Kelly Criterion
Institutional funds use a version of the Kelly Criterion (f*) to maximize logarithmic capital growth. If your edge is small, risking more than 2% mathematically guarantees ruin over a series of 100 trades.
Recovery Asymmetry
A 50% loss requires a 100% gain to reach breakeven. A 90% loss requires 900%. Your only real task as a trader is to avoid entering the zone of irreversible negative asymmetry.
Survival Protocol: Hard Stop
Never trade without a stop loss computed by the risk engine. The market has infinite memory, but your capital does not. Preservation is the first step toward profitability.
Visual maps
Survival formula
Define how much you can lose and which price invalidates the idea before execution.
Position sizing before execution
Position size starts with the loss you can accept
A risk calculator turns account size, entry, stop-loss, and risk percentage into a position size. It is designed to answer a practical question before a trade: if the stop is reached, how much of the account is actually at risk?
Position size is not conviction
A strong thesis does not justify a larger loss. Position size should be derived from a predefined account risk and the distance from entry to invalidation. The wider the stop, the smaller the position needs to be to keep the same monetary risk.
- Set account capital before the trade.
- Choose a maximum loss as a percentage or amount.
- Define entry and invalidation before calculating size.
- Treat leverage as exposure, not extra risk capacity.
Liquidation price is a warning, not a stop-loss
The position-size view uses planned account loss divided by stop distance. The liquidation view is a simplified estimate using a 0.5% maintenance-margin assumption. Exchange rules, fees, funding, and the exact contract can change the real liquidation price.
A liquidation estimate is a safety check. It should sit beyond a deliberate stop-loss, not become the place where a plan finally exits. Lower leverage can leave more room between normal volatility and forced closure, but it never makes a position safe by itself.
Use risk limits across a sequence of trades
One well-sized trade can still lose. Think in sequences: a fixed risk rule helps prevent a losing streak from becoming account damage. Review total exposure when several positions move together, because multiple altcoin trades can behave like one concentrated bet.
Frequently asked questions
What percentage should I risk per crypto trade?
There is no universal number. Many traders use a small predefined fraction of account capital, then reduce it for volatile or correlated exposure.
Can leverage increase my position size safely?
No. Leverage changes exposure and liquidation dynamics. The maximum loss should still be defined first.