Question 1

How to calculate position size for NEPSE stocks?

Accepted Answer

Decide how much NPR you will risk, then divide that amount by the distance between your entry and stop loss. Kitta = Risk NPR / |Entry - Stop|. CandleTrace floors the result to a whole kitta (1 kitta = 1 share) so you never exceed the risk cap. Example: NPR 5,000 risk, entry 520, stop 500 (NPR 20 per share) → 250 kitta. Position value is kitta × entry, so 250 × 520 = NPR 130,000.

Question 2

What is the 1% risk management rule in trading?

Accepted Answer

The 1% rule means you risk about 1% of account equity on a single trade. On a NPR 500,000 NEPSE book that is NPR 5,000. On a $10,000 forex account that is $100. Position size then follows from stop distance: a wider stop needs a smaller size to keep that same 1% loss if the stop hits. The rule caps damage from a losing streak. It does not pick entries or guarantee profit.

Question 3

How to calculate Forex lot sizes?

Accepted Answer

Convert your stop to pips, then divide dollar (or euro/pound) risk by (stop pips × pip value). A standard lot is 100,000 units of base currency and is worth about $10 per pip on USD-quoted majors. Mini lots are 10,000 units ($1/pip). Micro lots are 1,000 units ($0.10/pip). Example: $100 risk and a 20-pip stop → 0.50 standard lots, or 5.00 mini, or 50.00 micro. JPY pairs use a 0.01 pip size instead of 0.0001.

Question 4

How do you size Crypto and US Equity positions?

Accepted Answer

Use the same risk / stop-distance formula. Units or shares = Risk / |Entry - Stop|. Crypto can be fractional (exact units). US equities print exact shares. Example: $200 risk, stock entry $180, stop $175 → 40 shares. Crypto example: $100 risk, BTC 64,000 vs 62,000 → 0.05 units.

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