Risk Calculator

This resource was created to help you conceptualize, optimize, and execute your trades more efficiently. While we offer no guarantee of profitable results, we hope this tool helps you in some way. Begin by filling in your total capital, position size, and risk and ensure that your risk is only 1-2% of your total capital. Now you are ready to begin generating trade setups. Please watch our video and review the definitions and disclaimers below for a full understanding before you use this tool.

SAFE
RISKY
DANGEROUS
KAMIKAZE
Total Capital $
Position Size $
Position (% of total capital) %
Risk $
Risk (% of total capital) %
Leverage x
Stop Loss %
Contract Size
20000.00
$
Entry Fee
%
$
15.00

0.000375
contracts
Exit Fee
%
$
15.00

0.000375
contracts

Net Fees
$
30.00

0.75
% of position size
0.15
% of total capital

Definitions and disclaimer

Leverage – The factor by which you are borrowing money from the broker in exchange for more buying power (Contracts). Exchanges profit from market fees which are based off of Contract Size, not Position Size. Since Leverage allows the purchase of more Contracts, higher Leverage typically equates to paying proportionally higher fees. Changing this input generates a recommended Stop Loss and Contract Size based on the Leverage you choose. 5x and lower is safe. 6-10x is risky. 10-24x is dangerous. 25x and higher is kamikaze.

Contract Size – The number of contracts you are ordering which is calculated by your Position Size multiplied by your Leverage. This is your buying or selling power in the market.

Total capital – This is the total investment you are attempting to grow incrementally over time. Not all of your total capital should be on the exchange, as that exposes your capital to a number of risks both external and self-inflicted such as an exchange hack, losing account access or kamikaze trading.

Stop Loss – An order placed that specifies that an asset be bought or sold when it reaches a specified price known as the stop price. Once the stop price is met, the stop order becomes a market order and is executed at the next available opportunity. Stop Loss orders are used to prevent losses when a trade moves against you and your initial price prediction has been proven wrong. Use the long/short position tool on TradingView to measure the percentages of your Stop Loss orders so that you can calculate your losses effectively. In general, you will want to avoid placing a stop loss too close or too far away from the current price action. Too close, and you risk getting kicked out of a trade prematurely. A good Stop Loss will help you maximize other factors in your trade calculations. Changing this input generates a recommended Leverage and Contract Size based on the Stop Loss % you choose.

Fee Calculation – Most exchanges have a fee structure that taxes market orders and incentivizes limit orders. When you initiate a market order, you are filling the role of a consumer, or “taker” in the marketplace, like walking up to a vendor to purchase fruit. When you initiate a limit order, you are filling the role of the “maker.” Like a merchant waiting for someone to come along and purchase his fruit. The taker enjoys convenience at the cost of a small fee, while the maker enjoys a small rebate at the cost of convenience. A typical market order fee is 0.075% of Contract Size. A typical limit order rebate is 0.025%, expressed as a negative number in your fee calculations. Therefore, if you market order in and limit order out of a trade, you will have paid a 0.075% entry fee and received a -0.025% exit rebate, leading to a net 0.05% fee cost calculation. Since fees are calculated based off of Contract Size, you will experience proportionally higher fees the higher Leverage you use. Exchange fees will vary. Avoid trading on an exchange until you fully understand its fee structure.

Disclaimer – This calculator is merely a tool and does not guarantee profitable results. Trading involves real financial risk. There is always the potential of loss when investing/trading in any financial asset. CF Strategies LLC Is not liable for any potential financial losses incurred from using this tool. By purchasing Market Cipher and being a member, you fully understand and accept these risks. © 2023 CF Strategies LLC. All rights reserved.