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.
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
- Enter balance + firm. The account size + the firm whose DD rule you must respect.
- Enter risk per trade. Typical range: 0.25% to 1%. Aggressive operators go higher; firm-mode keeps you honest.
- 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.
- 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.
sections.relatedTitle
Share this calculator with the current inputs: copy the URL above. To embed in your own blog or site, append ?embed=1 to the URL and use it as an iframe src, or grab a ready-to-paste snippet from the embed snippet page.

