RightLine Risk Control Calculator
The RightLine Risk Calculator helps you manage risk by calculating the maximum number of shares for each position you enter. You can set the level of risk as high or low as you wish, but we highly recommend risking no more than 2% on any one trade.
How to Use the Risk Calculator
1. Enter the total value of your trading account in the Total Acct Value Including Cash field.
2. Enter the price of the stock under consideration in the Share Price field. Note: Enter the Share Price as a decimal.
3. Enter the broker’s commission for the trade in the Broker Fee, Round Trip field.
4. Enter the desired Stop Amount Points you intend to use in this trade. This is the number of points you are willing to risk on the trade. Note: Enter the Stop Amounts Points as a decimal.
5. Enter the amount of risk you are willing to accept on a any one trade in the Max Allowable Risk % field or tab to accept the default value of 2%.
6. Press the Calculate button to determine the Max Number of Shares for this trade. The Total Cost of Shares including Broker Fee, Total Amount Risked and the actual Amount Risked % will also be calculated for your reference.
Stops / Stop Orders / Stop Amount Points
How to use Position Size to Manage Risk.
Contact Us if you have any comments or questions regarding the RightLine Risk Control Calculator.