Position Tool

Exocharts Risk Management framework on the chart. Set your entry, targets, and stop. The tool sizes your position to match your risk:reward parameters. It automatically computes position size, risk/reward dollars, fees, liquidation price, breakeven price, and suggests exactly how much to trade at each level. Wider stop = smaller position. Sizing adjusts automatically for contract type, whether Linear, Inverse, Quanto, Spot, CME, Stock, etc.

Test out strategies against market structure levels on the chart: "If price tags this area and I take profit, how much leverage do I need to earn exactly 2:1 risk reward?"

Position Tool works on every instrument we support. Crypto perpetuals (linear and inverse), spot pairs, CME futures, stocks, and ETFs all work automatically. There's nothing to configure — the tool detects instrument type and adjusts its math internally.

Everything is built around a single idea: drop entry and stop once. Set your risk %. Let the math do the rest.

Skip to Risk management concepts below if you're new to using structured risk rules on trades. Answers to common questions are at the bottom (Q&A).

Getting started

Select the Position Tool from the left toolbar and click the chart where you want your entry price to be. Move your mouse to where you want the stop loss to be and click again to drop it. By default the tool initializes with a single take-profit level at 1:1 risk-reward ratio.

You can now drag the entire position up and down or drag individual levels to reprice them. Move the levels vertically using the left-side circle handles. Resize the tool horizontally using the right-side square handles. Double-click the tool to open its settings panel, or use the toolbar that appears above it when you interact with the tool.

Set your capital once

Position Tool requires you to set your account size once, before placing your first trade. Open the settings panel and specify:

• Bank Equity — your total trading capital. Think of all wallets and exchanges added together. This is what drives position sizing.
• Account Equity — currency specific. This is how much you currently have on the exchange where you're trading right now. This drives liquidation calculation.
• Position Risk % — maximum risk you're willing to take on this trade if the stop is hit. Don't risk more than 1% per trade. Professionals typically use 1%.

These three variables persist across charts and reloads. You only set them once.

How position sizing works

Take a risk percentage. Drop your entry and stop levels on chart. The tool sizes your position so that if the price hits your stop you lose exactly your risk percentage of Bank Equity.

Drag your stop loss closer to entry → position size increases. Drag it away from entry → position size decreases. Your dollar risk never changes.

This is the formula Position Tool uses:

Position Size = (Bank Equity × Risk %) ÷ Distance to Stop

Example: 10,000account.Risking1100). Buy BTC at 100,000withstoplossat99,000. Distance from entry to stop is $1,000 per BTC.

Position Size = 100÷1,000 = 0.1 BTC

Stop loss triggers. You lost $100, nothing more.

Stop loss distance and position size update in real-time as you drag around. Position sizing is always visible in the info box along with your current risk dollars and % of bank.

All math adheres to standard derivatives pricing conventions. Fees are baked into every metric. Position Tool accounts for trading fees on risk dollars, reward dollars, breakeven price, and yes even on risk:reward ratios. Fees % setting determines trading fee percentage paid per side. Default is 0.1%.

Single vs Multi mode

The tool has two modes. Toggle using the Single / Multi button on the toolbar (or the Multi-Position Mode checkbox in settings).

Single mode is for isolated, single-entry positions. One entry. One stop. One take-profit. Basic focused trade with everything you need. Count buttons and weights editor are hidden.

Multi mode unlocks advanced features: multiple entries (DCA / scaling in), multiple take-profits (partial exits), multiple stops (scaling out of losers), spacing modes, weights editor for custom percentages per level.

Switch between modes and the tool remembers everything. Create 3 take-profit targets in Multi mode. Switch back to Single mode and they disappear, but they're hidden inside the tool — the math still sees all 3 targets. Switch back to Multi and they reappear.

UI elements

Image showing each UI element with a description.

Green zone — the profit zone between your entry price and targets.

Red zone — the loss zone between entry price and stops.

Info box — main summary panel. By default shows R:R ratio with qualitative label (Very Poor / Poor / Acceptable / Good / Great / Verify Target / Unrealistic). Click the kebab menu icon (⋮) to the right side of the info box to toggle additional rows that show Risk, Reward, Qty, Risk %, Margin, Leverage, Account, Bank, Fees. Choices persist per tool.

Info button (ⓘ) — top-right corner of info box, next to the kebab menu icon. Opens this Risk Management article as a modal overlay. Same content as below, repeated there for convenience.

Target pill (green pill, top one) — shows the currently visible outermost target price along with total % gain and cumulative dollars profit.

Stop pill (red pill, bottom one) — shows stop price with total % loss and risk dollars.

Per-level labels (right side of tool) — shows on each TP, SL, and entry line how much quantity will trade at that level, the price, cumulative % return, and cumulative P&L when that level fills.

Average line (orange dashed) — appears when you have multiple entries in Multi mode. Shows your weighted average entry price. All P&L references this price, not your individual fills.

Break-even wire (gray dashed line) — extends from TP1 showing where to move the stop after your first target fills to eliminate risk on the remaining position. Accounts for fees. Sits slightly above entry price for long positions (below entry for shorts).

Liquidation line (red dashed horizontal line) — your liquidation price based on leverage and account equity. If your liquidation level falls between your entry and stop loss the label switches to LIQUIDATION BEFORE STOP and flashes bright red. This tells you that if the trade moves against you your stop loss will never trigger; instead the exchange will liquidate your position first. Reduce leverage to move the liquidation price further away from entry price.

Count buttons (numbered squares, Multi mode only) — click to set how many TP, SL, or entry levels you want. The dropdown lets you set both the count and the distribution spacing.

Pen button (Multi mode only) — opens the Weights Editor where you customize percentage allocation per level instead of equal distribution.

Spacing modes

You have multiple levels between your entry and some outer bound. Take-profits for example. Levels need to be distributed somehow across that range. Position Tool has six modes:

Use exponential or logarithmic when you want partials to trigger quickly near entry, then leave the rest behind to hopefully catch a big move. Use inversed variants if you expect the price to overshoot your targets and want most partials to trigger near that far target.

Settings panel

Double-click the tool to open the settings menu.

• Long / Short — trade direction.
• Multi-Position Mode — enable/disable multi entries, stops, and targets.
• Synth / Raw — Synth view shows P&L numbers in your settlement currency. Raw shows actual contract quantities per level in the exchange's currency. Useful when you're actually placing orders.
• Bank Equity — your total capital. Drives position sizing.
• Account Equity — your account balance on the exchange you're trading on right now. Drives liquidation calculation.
• Position Risk % — how much percent of Bank Equity you're willing to lose if the stop is triggered. 1% is a professionally accepted default.
• Position Size — automatically calculated from inputs above. Override manually (will recalculate your Risk % based off the new position size).
• Leverage — does not affect position size. Only impacts margin required and liquidation price.
• Leverage Type — Cross (protect position with entire account margin) or Isolated (protect position using only the position's own margin).
• Fees % — trading fee percentage paid per side. Default is 0.1%.
• Show Labels / Break Even / Liquidation — toggle visibility of each respective UI element.

Instrument detection

The tool auto-detects and adjusts for the differences across instruments:

• Linear perpetuals (USDT/USDC settled) — positions show P&L in quote currency
• Inverse perpetuals (coin settled) — positions show P&L in base currency, with inverse math applied correctly
• Quanto perpetuals — e.g. BitMEX ETHUSD. Positions show P&L in a third currency, irrespective of the traded contract
• Spot — no leverage available. No liquidation level.
• CME futures (ES, MES, NQ, CL, GC, etc.) — applies correct contract multiplier; hides leverage and margin inputs (CME has its own margin system)
• Stocks and ETFs — quantities automatically show in shares instead of contracts or coins

A blue note appears in the info box when a contract has a custom size. E.g. 1 OKX inverse contract = 100 USD. The note shows the conversion rate so you always know what a single unit you're trading is equal to.

Templates

Templates save a strategy, not a trade. Draw a position once with your preferred stop %, R:R targets, partial weights, risk %, leverage, and fee — save. Load it onto any chart at any price and the tool rebuilds every level proportionally around wherever you place your entry. Save a setup at BTC 100kinthemorning,loaditontoETHat3,500 in the afternoon, or onto a stock at $45 — same strategy, different prices.

When you load a template, entry stays exactly where you drew it. The stop is regenerated from the saved % distance: if the template was saved with a 1% stop, your new stop lands 1% below whatever entry you set, regardless of instrument. All TPs, SLs, and entry zone lines rebuild at the same proportional distance relative to the new entry-to-stop span. R:R from average entry is preserved automatically because every price scales uniformly — if you saved a 2:1 strategy, it loads as 2:1. Direction flips gracefully too: a long template loaded onto a short tool (stop above entry) regenerates the stop below entry and the TPs above, reinterpreting the geometry for the new direction.

What carries over from template: level counts and weights, spacing modes, risk %, leverage, fees, margin mode (Cross/Isolated), Synth/Raw preference, info-box visibility. What stays on the tool: its position on the chart, and your Bank Equity and Account Equity. A template shared from a trader with a 10kaccountdoesn′toverwriteyour50k account — position sizing then applies the template's Risk % to your real bank. None of the absolute prices (stop, TPs, SLs, entry lines) are stored in templates — only ratios — which is how a BTC template loaded onto a $0.50 altcoin stays coherent.

Six defaults ship out of the box: Scalp 0.5% · Single, Scalp 1% · Single, Intraday · Single, Intraday · Multi, Swing · Single, Swing · Multi. They cover a range of stop widths (0.5% scalp up to 3% swing), R:R ratios (1:1 up to 7R runners), and partial-exit ladders. Load any of them, edit, save over with a new name, or delete — they behave exactly like user-saved templates.

Use cases

• Planning a swing trade setup. Set entry at support, stop below structure, then place three targets at successive resistance areas. Open the weights editor and allocate 50% / 30% / 20% to ensure most of the position exits at TP1 with the remainder allowed to run. One look at the R:R label in the info box tells you if the trade is worth taking or needs more consolidation.
• Risk budgeting. Have 50,000capitalandonlyrisk1500 regardless of where you place the stop. Wider stop = larger position. Stop closer to entry = smaller position. Dollar risk does not change.
• Comparing setups. Place two position tools on the chart with different configurations and compare their R:R labels. Quickly evaluate which setup has better risk-adjusted return before risking actual capital.
• Pre-trade checklist. Switch to Raw mode. All per-level labels update to show exactly how many contracts / coins / shares to buy or sell at what price in the exchange's native units. Copy those values directly into your order form.

Risk management concepts

Everything below details the theory behind each feature of the Position Tool. If you've been trading for a while, consider this article a review. If you're new, hopefully this is where many of the tool's design choices start to make sense.

The 1% rule

Never risk more than 1-2% of your trading account on a single trade. A 10ktradingaccountshouldneverlosemorethan100-$200 on any given trade.

Why? An average 60% winner will still lose 5-7 trades in a row regularly. Risking 1% per trade, seven consecutive losses deplete your account by 7%. Painful, but survivable. Risk 10% per trade and the same losing streak cuts your account in half. Even if you win the next trade it's now an uphill battle:

• Lose 10% → need 11% gain to break even
• Lose 25% → need 33% gain to break even
• Lose 50% → need 100% gain to break even

Position sizing

Position Size = Risk Amount ÷ Distance to Stop

Example. 10kaccount,risking1100), buying BTC at 100kwithstopat99k. Distance from entry price to stop is $1k per BTC.

Position Size = 100/1k = 0.1 BTC. Stop loss triggers. You lost $100.

Same trade, different leverage:

• 1x → margin locked = $10,000 (entire account)
• 5x → margin locked = $2,000
• 50x → margin locked = $200

Risk stays $100 at all levels of leverage. Leverage only changes how much capital is tied up. More below.

Risk-reward ratio

R:R = Potential Reward ÷ Potential Loss

With a 3:1 R:R you can lose 70% of trades and still make money:

• 10 trades at 3:1, 30% win rate
• 3 wins × 3,000=+9,000
• 7 losses × 1,000=−7,000
• Net: +$2,000

The info box shows R:R and a qualitative label → Very Poor / Poor / Acceptable / Good / Great / Verify Target / Unrealistic.

Partial take-profits

Set target. Set stop. Walk away.

Easy. Until the market does exactly what you expected it to, only faster. Entries over-hit. Moves stall at your target. Markets overshoot daily. You either exit too early or hold a trade through a reversal that eats your profit.

Solution: switch to Multi mode (toolbar button). Set 3+ targets instead of one.

Example. Entry $100k, buy 1 BTC.

• TP1 $103k → sell 0.3 BTC
• TP2 $106k → sell 0.3 BTC
• TP3 $112k → sell 0.4 BTC

Click the pen button to enable custom percentage splits per level instead of equal distribution (50% / 30% / 20%).

Maximum profit is capped once you enable partials. Price runs to 112k.Youmade7,500 instead of 12,000ifyou′dleftitallrideatTP3.Whatyougaininreturnis∗certainty∗.AfterTP1firesyou′velockedin900 regardless of what happens next.

The risk-free moment

Repeat the process until enough partials have fired that locked profit exceeds the worst-case loss on the remainder of the position. You are now literally risk-free.

Example. Entry @ 95kavgprice,1BTC.Stop80k.

After TP6:

• Locked profit: +$9,300
• Remaining position: 0.4 BTC
• Worst case stop: 0.4 × (80k−95k) = −$6,000

Net if stopped at 80k:∗∗+3,300**

The break-even wire shows where to move the stop after TP1 fills to eliminate risk on the remainder of the position. Sits slightly above entry for long positions because it accounts for trading fees.

Leverage

Leverage changes nothing about potential P&L. It only impacts how much capital is locked as collateral.

Example. Buying 0.1 BTC @ 100kwithstopat99k. Risking $100.

• 1x → margin locked $10,000
• 10x → margin locked $1,000
• 50x → margin locked $200

Identical trade size at every level of leverage. Only required margin changes.

The liquidation trap

Higher leverage pushes liquidation price closer to entry. 10x ≈ 10% away. 50x ≈ 2% away. 100x ≈ 1% away.

If liquidation price ends up between your entry price and stop loss, the exchange gets to close your position before your stop loss is triggered. You don't lose your planned $100 risk — you lose your entire margin. Reduce leverage until your liquidation price moves past your stop loss.

Cross vs Isolated

Cross margin locks up your entire account balance as collateral. Further away liquidation but if the trade goes bad you can lose your entire account. Isolated margin only uses the position's margin as collateral. Closer liquidation but if the trade goes bad your other funds are protected.

Fees

You pay fees to enter and exit a trade. Round trip 0.1% per side cuts a theoretical 2:1 trade down to just ~1.5:1 realized reward:risk. Every metric in the info box is calculated net of fees. The R:R shown is the real one, not the gross number your exchange shows.

Multiple entries

Multiple entries let you scale into a trade. If the trade goes your way you get a better average price. If the trade goes against you your first fills lose less dollars.

Buying 1 BTC total but split across multiple entries:

• Buy 25% at $100k
• Buy 25% at $98k
• Buy 50% at $97k

Weighted average entry price = $98,250

Multi mode enables multiple entries with the dropdown next to the count buttons. A dashed orange line shows your weighted average price. All P&L figures reference this price, not your individual entry prices.

Non-negotiable rule: total risk across all fills cannot exceed the Position Risk % you set. The tool enforces this for you. Scale into a trade using however many entries you want — 3, 10, 25 — it always adds up to your maximum account risk.

Raw vs Synth

Synth view shows P&L in your settlement currency (USDT for linear contracts, BTC for inverse). The dollar amounts your exchange balance actually changes by. Raw view shows actual contract quantities at exchange-native units — the numbers you actually type into your order forms.

Use Synth mode for planning trade setups. Switch to Raw mode when you're actually placing orders.

How to trade like a pro

These concepts are how professionals trade every day. Tips to help you improve yours.

Daily loss limit

Prop firms limit day-trading account drawdown to 2-3%. Hit the limit? Stop trading for the rest of the day. Without a stop: bad trade → frustration → revenge trades → blown account.

Set your own daily loss limit. Close the computer when you hit it. Seriously. Go watch Netflix or something.

Bet size = risk %

A trade you're 95% sure about risks the same as a trade you know is only 60/40. Neither trade has a higher probability because nobody has perfect conviction. Every trader has been positively certain about a trade that loses. Trade the same size every time. Feel emotions after trades are completed, not during.

Three questions before every trade

1. Where am I wrong? → Stop loss. One price.
2. Is reward worth the risk? → Check R:R. Acceptable? Then we have a trade. Below 1.5 = fold.
3. Can I afford to be wrong? → Risk % > remaining daily loss limit = fold.

The Position Tool answers all three visually: stop line, R:R label, risk percentage.

• Three glances.
• Three answers.
• Three seconds.

Then trade or fold. Up to you.

Q&A

Q: I set target +24% above entry. Why does it show reward is only +15%? A: Because you're taking partial profits. Each partial exit is at a lower price than your final target. Only your last partial trades at the full +24% move. The cumulative column shows true total profit, which will always be less than all-out at the top.

Q: I changed my leverage from 10x to 50x. Why didn't my position size adjust? A: Leverage doesn't control position size. Risk % does. Leverage only affects how much margin you must lock. Same entry price, same stop price, same risk % = same position size at any leverage.

Q: Can't I just set stops for 20:1 risk:reward and only need to win 5% of trades? A: Math yes. Real life no. You can't hit 20:1 targets that far from your entry price reliably. Your win rate won't stay at 60% because 20:1 trades rarely fill. Suddenly you're losing more than you should and watching tiny losses pile up for months waiting on that one big winner. Pro range is 1.5:1 to 3:1.

Q: My stop is 95kbutliquidationisshowing96k. What happens? A: You get liquidated before the stop triggers. The exchange doesn't care about your stop price. It closes your position at 96kandyouloseyourentiremargin,notjustyour100 risk. Lower leverage until liquidation moves below your stop loss.

Q: Position Tool shows "OVER MARGIN — min leverage: 26x" in red. What does this mean? A: Position size exceeds account equity at the current leverage. You cannot open this trade with current settings. Add more funds, raise leverage to at least the 26x shown, or reduce position size.

Q: If I have 5 entries will the stop trigger after ALL entries have filled? A: The tool plans for the worst-case scenario, which is all entries fill then stop triggers. That's your maximum risk dollar amount. In reality, if price reverses after only 2 entries fill your actual realized risk was smaller. The tool always shows the worst-case scenario that can hurt you most.

Q: Entry 100k,stop99k, fees 0.1%. Why does break-even price show 100,200not100k? A: Because it costs you ~100toenterthetradeand 100 to exit. True break-even must account for both entry and exit fees. If you slide the stop loss up to raw entry price you still lose $200 to round-trip fees.

Q: What does "1 contract = 100 USD" mean in the info box? A: Some inverse exchanges like Binance Coin-M don't trade in BTC. You trade contracts that are denominated in USD. 1 contract = 100worthofexposure.Toget100k exposure at $100k BTC price, you need 1,000 contracts. The tool shows this alert so you know how many actual contracts to trade on the exchange.

Q: Synth vs Raw mode — which should I use? A: Synth view shows P&L amounts in your settlement currency (USDT for linear contracts, BTC for inverse). Shows how your exchange balance actually changes when the trade hits your targets. Raw view shows the numbers you actually type into order forms on the exchange — contract quantities in the exchange's native units. Plan the trade in Synth. Switch to Raw when placing orders.