How much should I reduce my position size after a losing streak?
Enter Your Numbers
Your Result
Fill in the fields on the left and click Calculate to see your scaled-down risk per trade.
How this is calculated
Your normal risk per trade in dollars is either the dollar amount you entered, or your account size multiplied by the percentage you entered.
Your adjusted risk per trade equals your normal risk multiplied by (1 minus your reduction percentage) raised to the power of your consecutive losses.
Reducing size by 50% after each loss means one loss cuts your risk in half, two losses in a row cuts it to a quarter of normal, and so on.
This is a mechanical sizing rule some traders use to lower exposure during a rough stretch instead of trading the same size, or bigger, while trying to win it back. It does not predict whether your next trade wins or loses.
This tool does not track your trades automatically. Enter 0 consecutive losses once you've had a winning trade, or whenever your own rule says to reset to normal size.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Reducing position size after losses can lower risk during a losing stretch, but it does not eliminate the risk of further losses. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation. Always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
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