Start with the arithmetic
For an educational stop-based illustration, divide a chosen cash loss budget by the assumed stop-distance fraction. With 10,000 units of simulated capital, a 1% budget is 100 units. Dividing 100 by a 3% distance gives about 3,333 units of notional exposure.
Apply an exposure cap
That arithmetic may produce more exposure than the available capital when the assumed stop is tight. The homepage calculator caps notional exposure at the capital entered and reports when that cap applies. It does not model borrowing or leverage.
Understand what the number omits
The stop distance is a calculation assumption, not an execution guarantee. Prices can gap through a stop. Fees, spreads, slippage, correlation and simultaneous positions can change the loss.
Keep the paper test honest
Use the same sizing rule throughout an evaluation window and record changes. A strategy that uses variable exposure should not be compared with a full-capital benchmark without acknowledging that difference.
Sources and next steps
- Premiss pricing and paper bots ↗Paper bot allowances, supported alerts and separate approved live access.
- Premiss signal bots ↗Public description of strategy alerts and delivery workflows.