What the calculation measures
Position sizing controls intended loss if the stop/invalidation price is reached under ideal execution.
How to interpret the result
Use a risk percentage that fits your own process; the tool does not recommend a trading strategy.
Run scenarios instead of one answer
Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.
Limits and assumptions
Gaps, slippage, leverage and correlated positions can cause actual portfolio risk to differ.