position-sizing — independently scanned and version-tracked by SaferSkills.
SaferSkills independently audited position-sizing (Agent Skill) and scored it 100/100 (green). The audit ran 55 deterministic rules across Security, Supply Chain, Maintenance, Transparency, and Community; it found 0 high-severity and 0 lower-severity findings. The full rule-by-rule trace and per-finding evidence are below. Free, methodology-open.
Findings & checks · 0 flagged
Every scanned point with the score it earned and what moved between them.
First recorded scan — no prior version to compare against.
The primary manifest — the file an agent reads to learn what this artifact does.
Position sizing is how you survive. The goal: risk a small, consistent percentage of capital per trade so that no single loss can cripple your account.
No dependencies required. Works with manually provided prices. Enhanced with Groww MCP (live price, ATR, portfolio) or yfinance (pip install yfinance).
get_quotes_and_depth from Groww, or user-providedget_historical_technical_indicators from Groww, or calculate from candle dataget_equity_portfolio_holdings to check concentration (optional)This is the go-to method. Simple, robust, works for everyone.
Risk per trade = Account size × Risk%
Shares = Risk per trade ÷ (Entry price - Stop-loss price)
Capital required = Shares × Entry priceRisk% guidelines:
| Situation | Risk% |
|---|---|
| Normal (no leverage) | 1-2% |
| With 2x leverage | 0.5-1% |
| With 3-4x leverage | 0.25-0.5% |
| High conviction trade | Up to 3% (rare) |
| New/uncertain setup | 0.5% |
Account: Rs.10,00,000
Risk: 2% = Rs.20,000
Entry: Rs.1,800
Stop: Rs.1,700 (Rs.100 risk per share)
Shares: 20,000 ÷ 100 = 200 shares
Capital: 200 × 1,800 = Rs.3,60,000 (36% of account)Uses volatility to set the stop distance, then sizes accordingly.
Stop distance = ATR(14) × multiplier
Shares = Risk amount ÷ Stop distance| Market Condition | ATR Multiplier |
|---|---|
| Low volatility (ADX < 20) | 1.5× ATR |
| Normal volatility | 2.0× ATR |
| High volatility (ADX > 30) | 2.5× ATR |
This naturally sizes you smaller in volatile stocks and larger in calm ones.
For traders with a track record of at least 30 trades:
Kelly% = W - (1 - W) / R
W = historical win rate
R = average win / average loss
Use Half-Kelly (Kelly% ÷ 2) for real trading — full Kelly is too aggressive.| Win Rate | Avg W/L Ratio | Kelly% | Half-Kelly |
|---|---|---|---|
| 40% | 2.0 | 10% | 5% |
| 50% | 1.5 | 17% | 8% |
| 60% | 1.2 | 27% | 13% |
These are hard limits — never exceed them regardless of sizing method:
| Constraint | Limit |
|---|---|
| Single stock | Max 20% of portfolio |
| Single sector | Max 35% of portfolio |
| Total open risk | Max 6% of portfolio (sum of all position risks) |
| Correlated positions | Max 3 stocks in same sector simultaneously |
If a position would breach a constraint, reduce size until it fits.
When using margin/leverage, the math changes because losses are amplified:
Effective risk% = Risk% × Leverage
So: reduce your base risk% by dividing by leverage
At 3.74x leverage:
Normal risk: 2%
Adjusted risk: 2% ÷ 3.74 ≈ 0.5%
This keeps your effective risk at ~2%Present position sizing as:
Position Size: XXX shares
Capital Required: Rs.X,XX,XXX
Risk Amount: Rs.X,XXX (X.X% of account)
Stop-Loss: Rs.XXX (X.X% below entry)
Portfolio Allocation: XX% of total capital~30 seconds. Free. No account. Every finding cites a rule and a line of evidence.