Position sizing for funded crypto accounts
How to size crypto positions so a losing streak can't breach your loss limits, with the arithmetic for BTC and a DeFi token on a $100K account.
Most breached accounts aren't caused by one bad idea but by position sizes too large for the loss limits. Sizing from the limits backwards keeps a normal losing streak survivable.
Start from the limits
On a $100K 2-Step Challenge, the daily limit is $5,000 and the total limit is $10,000. If you risk $500 per trade (0.5%), it takes 10 consecutive full losses to reach the daily limit and 20 to reach the total limit.
| Risk per trade | Amount | Losses to daily limit | Losses to total limit |
|---|---|---|---|
| 0.25% | $250 | 20 | 40 |
| 0.5% | $500 | 10 | 20 |
| 1% | $1,000 | 5 | 10 |
| 2% | $2,000 | 2 | 5 |
From risk to position size
For a coin priced in USDT, position size is the dollar risk divided by the distance to your stop:
Quantity = risk in dollars ÷ (entry price − stop price)
Example: BTC
Risk $500 buying BTC at $60,000 with a stop at $58,800, a $1,200 distance: $500 ÷ $1,200 = 0.417 BTC, a position worth about $25,000.
Example: a DeFi token
Risk the same $500 on a token at $10.00 with a stop at $9.20: $500 ÷ $0.80 = 625 tokens. The wider percentage stop means a smaller position.
Count open risk, not just new risk
The daily limit applies to equity, so three open trades each risking $500 add up to $1,500 of potential loss at once. Before opening a new position, add up the risk already on.
Keep a buffer
Treat about half the daily limit as your real limit. On this account that's $2,500. Crypto can gap sharply on news and at weekends, so the buffer matters more than in slower markets.
Calculate your own numbers with the reward estimator and the trading rules.
By the Sim2Funded team. Educational content, not investment advice.
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