Define the acceptable loss first. Position size is the output, not the starting point.
Always round down to valid contract sizes. If the result is below one contract, consider the corresponding micro contract. Educational use only; adapt inputs to broker and instrument specifications.
Use this table to quickly calculate maximum position size based on the 1–2% risk rule. Formula: Position Size = (Account Size × Risk %) ÷ (Stop Distance in Points × Point Value).
Example for NQ (E-mini Nasdaq-100): Point value = $20 | ES (E-mini S&P 500): Point value = $50
| Account Size | Risk % | Risk Amount | Stop Distance (Points) | NQ Contracts | ES Contracts |
|---|---|---|---|---|---|
| $50,000 | 1% | $500 | 50 | 0.5 | 0.2 |
| $100,000 | 1% | $1,000 | 50 | 1 | 0.4 |
| $100,000 | 2% | $2,000 | 50 | 2 | 0.8 |
| $200,000 | 1% | $2,000 | 75 | 1.3 | 0.5 |
| $500,000 | 1% | $5,000 | 100 | 2.5 | 1 |
Note: Round down to the nearest valid contract size. Adjust for volatility — use tighter stops or lower risk % in high-volatility environments.