Risk Management

Volatility-Target Position Size Calculator

Enter your account size, target annualized portfolio volatility, and the instrument's own annualized volatility to size a position the way volatility-targeting and risk-parity strategies do: bigger size on calmer instruments, smaller size on wilder ones, so each position brings the same volatility to the book.

Account Size ($)

Target Portfolio Volatility (% annualized)

Instrument Volatility (% annualized)

Price Per Unit

Target position value···

Units / shares···

Implied leverage (position / account)···

Educational tool only, not financial advice. Uses the standard volatility-targeting formula: position value = account size × (target vol / instrument vol). Volatility isn't constant, and the result can imply leverage above 1x.

Built by Jason Parker, founder of Trading Ranges.