Golden Ratio Position Sizing Calculator
Scale a series of position entries up or down by the golden ratio (1.618), a technique sometimes called Fibonacci pyramiding.
Entry Size by Entry
Entry-by-Entry Schedule
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"Fibonacci pyramiding" is a way of building into (or out of) a position across multiple entries, where each entry's size is scaled by the golden ratio, 1.618, relative to the one before it, instead of every entry being the same size.
This is more of a novelty than a rigorously proven technique, there's no strong evidence that scaling by exactly 1.618 outperforms other scaling schemes, but it's a real, commonly searched approach, and the underlying math (geometric scaling) is a legitimate way to think about position building either way. For a version that ties the scaling directly to a Fibonacci entry and target, see this site's Fibonacci Risk/Reward Calculator.
How does this calculator work?
Enter your initial entry size in dollars, how many total entries you want to plan for (including the first one), and whether to scale down or up.
Scaling down multiplies each subsequent entry by 1 ÷ 1.618 (about 0.618) relative to the previous one, so entries get smaller over time. This puts the most weight on your first, least-confirmed entry, and progressively less on each add as the trade develops, a comparatively conservative approach.
Scaling up multiplies each subsequent entry by 1.618 relative to the previous one, so entries get larger over time. This puts the most weight on your later, more-confirmed entries, a more aggressive approach that concentrates risk into higher-conviction adds.
The calculator computes every individual entry's size, the running cumulative total after each one, and what percentage of the full position each entry represents, alongside a bar chart so the shrinking or growing pattern is visible at a glance.
Worked example
A $1,000 initial entry, 5 total entries, scaling down by the golden ratio.
- Entry 1
- $1,000.00 (42.0% of total)
- Entry 3
- $381.98 (16.0% of total)
- Entry 5
- $145.91 (6.1% of total)
- Total position
- $2,382.02
How the numbers work
Each entry is the previous one divided by 1.618: $1,000, then $618.05, then $381.98, then $236.08, then $145.91.
Summed together, the full 5-entry position totals $2,382.02, with the first entry alone making up nearly 42% of the entire position.
The scaling-down approach means a trade that only ever fills the first entry still represents a meaningful position (42% of the full plan here), while scaling up means an early entry is a small, low-commitment starting point that only grows into a large position if later, more-confirmed entries also fill.
Golden Ratio Position Sizing Calculator glossary
- Pyramiding
- Adding to a position across multiple entries rather than all at once, either as a trade develops in your favor or at multiple predetermined price levels.
- Golden Ratio (1.618)
- The irrational number that results from dividing consecutive numbers in the Fibonacci sequence as they grow large, used here as a fixed scaling factor between successive entry sizes.
- Scaling Down / Scaling Up
- Whether each successive entry in a pyramided position is smaller (down, 1 ÷ 1.618 per step) or larger (up, ×1.618 per step) than the one before it.
Golden Ratio Position Sizing Calculator FAQs
Is there real evidence the golden ratio specifically works better than other scaling factors?+
No rigorous, widely accepted evidence supports 1.618 specifically outperforming other scaling ratios (like a simple 50% or 75% step-down). The appeal is largely the same cultural resonance the golden ratio has elsewhere, not a proven statistical edge. The underlying idea, geometric position scaling, is legitimate; the specific ratio chosen is more a matter of preference.
Which direction should I use, scaling up or down?+
Scaling down (smaller adds over time) is generally considered more conservative, since it limits how much capital is committed before a trade has proven itself. Scaling up (larger adds over time) is more aggressive, committing more capital only after a trade has already moved favorably or been otherwise confirmed, which some traders prefer specifically because it avoids over-committing early.
Does this account for my account size or risk tolerance?+
No, this calculator only handles the relative scaling between entries. Combine it with this site's Position Size Calculator to tie your total position size to a specific percentage of account risk.
Open the Position Size CalculatorCan I use this for exits instead of entries?+
Yes, the same scaling logic works for scaling out of a position across multiple price targets, just apply the entry sizes to exit sizes instead. Many traders use a similar (though not necessarily golden-ratio-based) scaling approach for partial profit-taking.