TradeMathic educational guide. All figures are hypothetical examples for learning the arithmetic. They are not trading advice, signals, or a description of any firm's rules. Verify contract specifications with your broker or exchange and every limit with your firm's current written rules before trading.
TradeMathic / Guides
Pre-trade math guides
Three guides, each built around one calculation you can check by hand. Every example states its assumptions, shows each step, and ends with the fields to fill in the calculator. None of them tell you what to trade.
01Position sizing from a risk budgetTurn a percentage of the account into lots or contracts, and round the result the right way.Read guide02Daily loss and maximum drawdown floorsFind the stricter of two floors and see how much room a planned trade actually has.Read guide03Consistency rules and payout thresholdsWork out the cumulative profit a best-day cap requires, and why that is not payout approval.Read guide
A suggested reading order
The guides follow the order the numbers are usually needed before a trade.
STEP 1
Size
Decide the dollar risk, then convert it into lots or contracts.
STEP 2
Check room
Compare that risk with the stricter of your loss floors.
STEP 3
Plan payouts
Measure realized profit against any consistency threshold.
How to read these guides
- Every dollar figure is a hypothetical example chosen to make the arithmetic easy to follow.
- Rules described are generic forms. Firms word and measure them differently; your firm's current rules take precedence.
- Contract values come from your broker or the exchange. Where a guide cites one, it links the official source.
- A result that fits the math is not a prediction, a recommendation, or a guarantee of any outcome.
Run your own numbers
Enter your verified specifications in the calculator and check the arithmetic.