Quick-reference shortcuts for risk sizing, bps conversions, R multiples, and spread costs.
risk sizing
Risk sizing: max loss → share count
Decide how many dollars you can lose, then let the stop distance set the position size.
Daily risk capacity: how many full-size trades fit?
Divide your daily loss limit by per-trade risk to find the maximum number of full-size losing trades.
bps percent
BPS ↔ percent ↔ dollars: quick conversions
1 basis point = 0.01%. 100 bps = 1%. Use these anchors to convert between bps, percent, and dollars in your head.
Percent change shortcuts
Break any percent into easy building blocks: 10%, 5%, 1%, and 25%.
r multiples
R multiples: sizing outcomes in units of risk
1R is your planned stop distance in dollars. Express P&L as multiples of that unit to compare trades on any ticker.
Break-even win rate from reward:risk
The minimum win rate at which a setup earns zero, before fees. Lower reward:risk requires a higher hit rate.
spread cost
Spread in bps: how expensive is the market?
Express the bid-ask spread as bps of midpoint to compare execution costs across different-priced assets.
Round-trip execution cost: spread + fees
Total cost of entering and exiting = spread drag + explicit fees. Know your breakeven move before placing a trade.