Stop Loss Account %
The percentage of your account value at risk if your stop loss is triggered, measuring position risk relative to total capital.
Formula
More Details
What is Stop Loss Account %?
Stop Loss Account % measures the percentage of your trading account that would be lost if your stop loss is triggered. This is a critical risk management metric that helps you understand position sizing relative to your total capital.
Formula
For Long Positions:
Stop Loss Account % = ((Open Price - Stop Loss Price) × (Quantity / 2) / Account Value) × 100
For Short Positions:
Stop Loss Account % = ((Stop Loss Price - Open Price) × (Quantity / 2) / Account Value) × 100
Why It Matters
| Risk Level | Stop Loss Account % | Interpretation |
|---|---|---|
| Conservative | < 0.5% | Very safe, suitable for beginners |
| Moderate | 0.5% - 1% | Standard risk management |
| Aggressive | 1% - 2% | Higher risk tolerance |
| Dangerous | > 2% | Significant account risk per trade |
The 1% Rule
Many professional traders follow the "1% rule" - never risk more than 1% of your account on a single trade. Stop Loss Account % makes this calculation automatic for every trade.
Example Calculation
- Account Value: $50,000
- Stock: AAPL at $150 (open price)
- Stop Loss: $145
- Quantity: 100 shares
Stop Loss Account % = (($150 - $145) × (100 / 2) / $50,000) × 100
= ($5 × 50 / $50,000) × 100
= ($250 / $50,000) × 100
= 0.5%
This means if AAPL hits your stop loss, you lose 0.5% of your account.
TradesViz Advantage
TradesViz automatically calculates Stop Loss Account % for every trade with a defined stop loss, considering:
- Asset-specific multipliers (futures, forex)
- Current account value at time of trade
- Position direction (long/short)
Important: Account Value Setup
For this metric to work correctly, you need to have your account value properly tracked. Make sure to:
1. Add your initial deposit when setting up your account
2. Record deposits and withdrawals as they occur
3. Keep balances updated for accurate account value tracking
Learn more: How to add deposits, withdrawals and balances
Where to find it in TradesViz
Example
A trade with Stop Loss Account % of 1.2% means triggering the stop would result in a 1.2% account drawdown.