Firm-mode position sizing

Risk-per-trade alone isn't enough on tight-DD firms. This calculator caps lots at the smaller of your risk budget or one-third of the firm's drawdown cushion — so a single bad trade can't end the challenge.

Firm

Recommended lots

2.50

Constrained by risk per trade. Risk-budget alone: 2.50 lots. Firm-cushion limit: 8.33 lots.

$-at-risk: $500. Firm DD cushion: $5,000 (5.0%).

How to use this calculator

  1. Enter balance + firm. The account size + the firm whose DD rule you must respect.
  2. Enter risk per trade. Typical range: 0.25% to 1%. Aggressive operators go higher; firm-mode keeps you honest.
  3. Enter stop-loss pips + pip value per lot. $10 per pip per standard lot is typical for EURUSD on a $100k account. Check your broker for exact pip value.
  4. Read the recommended lots. Smaller of risk-budget vs firm-cushion. The line below tells you which limit is biting.

FAQ

Why one-third of the cushion, not 100%?
A single loss should leave you with breathing room for the inevitable second, third, and fourth loss. One-third leaves enough DD buffer to recover from a normal losing streak.
My broker shows different pip value — why?
Pip value scales with lot size, base currency, and account currency. The default ($10/lot) is standard for EURUSD on a USD account. Override with your broker's exact value.
Does this work for non-FX instruments?
Yes — substitute "pip" for "tick" or "point" and "pip value" for the corresponding instrument unit value.
Why does the recommended size go to zero?
Either your stop is too wide, your risk-per-trade is too small, or the firm's DD cushion is already exhausted. Re-check inputs.
Is this Kelly sizing?
No — Kelly maximises geometric growth assuming you know your edge. This tool minimises ruin risk on a fixed-DD challenge where you can't recover from bust.

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