Size every trade by a model, not a guess — equity and futures (with margin). Built on Van Tharp's position-sizing framework: pick a model, learn how it works, and apply it.
Risk a fixed % of your account on every trade.
You decide the most you are willing to lose on one trade as a percentage of your account — commonly 0.5–2%. Position size is that rupee amount divided by your per-unit risk (the distance from entry to stop). Because size scales with the stop distance, a tight stop lets you hold more units and a wide stop fewer, so every trade risks the same fraction of capital. For futures, per-unit risk is multiplied by the lot size, and the result is capped by the margin your equity can cover.
When to use it
The default for most discretionary traders. Use it whenever you have a defined entry and stop-loss.
Framework popularised by Dr. Van K. Tharp; explanation written by Tracktions. Further reading.
Educational tool only. Tracktions is a trade-journaling and analytics tool, not investment advice — we are not SEBI-registered advisers and do not provide trade recommendations or assurances of returns. Every result is based solely on the numbers you enter; confirm lot sizes and margins with your broker before trading.