Analyze
Calculate crypto position size, stop loss and risk-to-reward
Use the Basis risk calculator and chart position tool to size long or short scenarios from account risk, entry, stop and targets.
The calculator needs a real invalidation level
Position size is derived from the distance between entry and stop, the account value and the maximum loss you allow. A stop chosen only to create a larger position reverses the logic: structure should define invalidation, and risk should define size.
| Input | Meaning |
|---|---|
| Account value | Capital base used for the scenario |
| Risk % or amount | Maximum planned loss if the stop fills |
| Entry | Expected average execution price |
| Stop | Price that invalidates the setup |
| Target | Scenario objective used for R-multiple |
| Leverage | Margin efficiency; it does not reduce price risk |
Plan a position on the chart
- 01
Mark invalidation
Place the stop beyond the structure that makes the thesis wrong, with room for expected volatility.
- 02
Set entry
Use the price you can reasonably execute, not the candle extreme visible after the fact.
- 03
Set allowed loss
Choose a fixed account risk that remains tolerable across a losing sequence.
- 04
Read size and R
Basis calculates quantity, notional exposure, maximum loss and reward-to-risk.
- 05
Stress the plan
Consider slippage, fees, funding and a gap through the stop before accepting the size.
Leverage changes margin, not invalidation
Two positions with the same notional exposure and stop distance carry similar directional price risk even if one uses more leverage. Higher leverage reduces posted margin and moves liquidation closer; it does not make the thesis more accurate.
Important
Liquidation estimates are approximate and venue rules vary. Never use liquidation as the intended stop.
Use R-multiples to compare unlike trades
One R is the planned loss from entry to stop. Expressing outcomes in R makes a BTC scalp and an altcoin swing comparable even when their prices and sizes differ. Journal planned R and realized R separately; slippage and management often explain the gap.