The trading toolkit

Plan. Calculate. Review.

Turn a trading idea into clear numbers. Hypothetical examples for a linear gold instrument quoted in USD per ounce.

Practice tool · XAU/USD

Turn risk into position size.

Work through a hypothetical linear gold position in a USD account. Replace the example values with the contract specifications shown by your broker.

How the calculation works

Budget = equity × risk % ÷ 100.
Estimated risk per lot = (entry-to-stop distance + extra execution allowance) × ounces per lot + round-trip commission.
Lot size is rounded down on the grid starting at the minimum lot size, with the specified increment.

Assumes a linear USD-per-ounce instrument and proportional commission. Fixed fees, currency conversion, tiered charges and financing require separate treatment. Stop execution can exceed the allowance, so the estimate is not a maximum-loss guarantee.

Example values are prefilled for practice. Select Calculate position size to see the result.

Read lesson 7: Position size, step by step →

02 · Price distances

Reward / risk

Compare the planned target distance with the entry-to-stop distance, before costs.

Calculate to see the planned price ratio.
Formula & limitations

Reward / risk = |target − entry| ÷ |entry − stop|. This is a price-distance ratio, not an expected return or a probability of success. It excludes commissions, financing, spread and slippage.

Study stops and targets →
03 · Equity arithmetic

Drawdown recovery

See the percentage gain needed to return to an earlier equity level after a loss.

Calculate to see the required recovery.
Formula & limitations

Required gain (%) = drawdown ÷ (100 − drawdown) × 100. A 20% fall leaves 80% of the original equity; a 25% gain on that balance restores the original level. Assumes no deposits or withdrawals. A 100% loss has no finite percentage recovery.

Build a review process →
04 · Before you click

Make the plan explicit.

A reflection checklist. Checking every box does not validate a trade or guarantee an outcome.

0 of 8 reviewed · Session checklist

Explore Before You Click →Follow the beginner course →

These tools provide arithmetic for educational examples. Actual execution and contract specifications can change the result. Checklist answers stay on this page and are cleared when it reloads.