Split a planned position across three targets and estimate the weighted reward without changing the original risk amount.
STEP-BY-STEP
How to use this tool
- Enter the total position quantity and the complete dollar risk at the original stop.
- Enter the percentage of the position assigned to each of three targets.
- Enter each target distance as an R multiple of the original risk distance.
- Keep total allocations at or below 100%; any remainder is displayed as an unmodeled runner.
- Review target quantities and round them down to valid platform increments.
- Confirm that partial fills, stop movement and fees still fit the written exit plan.
WORKED EXAMPLE
See the calculation in context
A 1.00-lot position split 50% at 1R, 30% at 2R and 20% at 3R produces quantities of 0.50, 0.30 and 0.20 lots. The weighted planned reward is 1.70R, or $425 gross on $250 of planned risk.
Calculation method
Target quantity = total quantity × target allocation percentage. Weighted planned reward in R = the sum of each allocation percentage × its target R, divided by 100. Unallocated quantity has no assumed reward.
AVOID THESE ERRORS
Common mistakes
- Allocating more than 100% of the original position
- Rounding every target upward
- Treating an unallocated runner as guaranteed profit
- Ignoring fees or slippage on several exits
- Moving the original stop without recalculating risk
- Assuming weighted reward is a predicted outcome
FREQUENTLY ASKED
Questions and answers
Does this change the original dollar risk?
No. It distributes position quantity across targets while using the original total risk to estimate R-based reward.
What happens to an allocation below 100%?
The remainder is shown as a runner. Because no exit is defined for it, the calculator assigns it no reward.
Should target quantities be rounded?
Yes. Round down to permitted increments and verify their sum does not exceed the actual position.