Position Sizing Calculator

Overview

This skill calculates the optimal position size for a long stock trade based on a defined risk management framework. It ensures that no single trade can disproportionately impact the portfolio.

Core Features:

• Risk-Based Sizing: Position size is determined by risk per trade, not a fixed dollar amount.
• Multiple Sizing Models: Supports Percent Risk, ATR (Average True Range) Volatility, and Kelly Criterion models.
• Stop-Loss Integration: Calculates the number of shares to buy based on the distance to the stop-loss.
• Portfolio Context: Checks for sector concentration and total portfolio risk.

When to Use This Skill