Plan and replay a trade
This final exercise combines the complete trade plan. You intend to enter a long position at $100, place the stop-loss at $96, and place the take-profit at $108. You are willing to risk $80.
Before revealing the future candles, calculate the position size. Then calculate the risk–reward ratio and the potential profit. Use the formulas from the previous chapters.
Risk per share = entry − stop-loss
Reward per share = take-profit − entry
Position size = maximum planned loss ÷ risk per share
Now select Play. The chart will reveal one completed candle at a time. The position closes when price first reaches either the $96 stop-loss or the $108 take-profit.
Read each candle against both exit lines. A wick reaching a line is enough to fill the order, even when the candle closes somewhere else.
After playback, identify the exit that was filled and calculate the completed result. This follows the same order used in real trading: plan the risk first, place the trade, and then evaluate the outcome.
What position size keeps the maximum planned loss at $80?
Choose one answer.