Position sizing is not an afterthought. It is the single most important decision you make on every trade — more important than your entry, more important than your exit, and infinitely more important than the ticker you choose.

Your Risk Profile in Trandence is where you define the rules that govern this decision, so the algorithmic engine can audit your actual sizing against your stated risk parameters on every single trade.

The Risk Matrix

The centerpiece of your Risk Profile is the Risk Matrix — a table that maps your setup quality to a percentage of your Daily Stop Loss that you’re willing to risk on that trade.

Navigate to Settings → Risk Profile to configure it.

What Is the Daily Stop Loss (DSL)?

Your Daily Stop Loss is the maximum amount you are willing to lose in a single trading session before you stop trading. This is your absolute circuit breaker — the number that, once hit, ends your day.

You set the DSL on a per-session basis in the Day Report’s Pre-Market section — not in the Settings dialog. This allows you to adjust your daily risk depending on conditions, readiness, and volatility. Every position size in your session is then calculated as a fraction of this number.

Quality Tiers

The Risk Matrix defines six quality tiers. Each tier maps to a percentage of your DSL:

Setup Quality	Default (% of DSL)	Description
A+	50%	Highest conviction setup. Rare. Maximum exposure.
A	30%	Clean textbook setup with all criteria met.
B+	20%	Good setup with minor imperfections.
B	10%	Average-quality setup. Meaningful size reduction.
C+	5%	Below-average setup. Question whether it’s worth taking.
C	5%	Lowest-quality setup. Risk should be negligible.

These percentages are fully customizable. Enter the values that match your personal risk tolerance in the Settings → Risk Profile tab, and click Save Risk Matrix. Thealgorithmic engine will use them as the baseline for Playbook adherence analysis when auditing your sizing decisions.

How It Connects to Trading

When you open a Symbol Report and assign a setup quality grade, Trandence automatically calculates the Planned Risk Amount based on your Risk Matrix:

Planned Risk = DSL × Risk Matrix Percentage for the assigned quality tier

For example: if your DSL is $500 and you grade the trade as “A” (30% of DSL), the planned risk is $150. If your actual risk on the trade was $220, the algorithmic engine flags a sizing violation and reflects it in both the trade verdict and your Session Grade.

You always have the option to override the calculated risk for a specific trade — but the override is logged, ensuring full transparency in your execution audit.

Preferences That Shape Your Analytics

Beyond the Risk Matrix, the Settings → Preferences tab contains configuration options that directly affect how Trandence processes and displays your data:

Chart Timezone

All charts, P&L calculations, and calendar views in Trandence are anchored to a specific timezone. Set this to match your market hours (e.g., New York (GMT-5) for US equities).

Getting this wrong will cause your session boundaries, daily P&L calculations, and rolling statistics to misalign with actual market hours.

P&L Display Mode

Choose whether P&L is displayed Net (after fees) or Before Fees across the Calendar, Dashboard, and reports.

Net P&L is the more honest metric — it shows your actual take-home performance. This option requires a Pro subscription.

Global Risk Display Mode

Controls how monetary values and risk are displayed throughout the platform andalgorithmic engine reports:

• Hybrid (USD + R-Multiples): Shows both USD and R-Multiples when a Daily Stop Loss is set. Best for traders transitioning from dollar-based to risk-normalized thinking.
• R-Only (R-Multiples only): Shows only R-Multiples everywhere. Best for experienced traders who want to evaluate performance purely in risk units, removing the psychological anchor of dollar amounts.

Why This Matters

A Risk Profile is not a formality. It is the foundation of your entire risk management system. Without it:

• Thealgorithmic engine cannot audit your sizing decisions
• Session grades cannot evaluate risk adherence
• The Performance Analyzer cannot calculate counterfactual scenarios (“What if you had followed your sizing rules?”)

Take 5 minutes to configure your Risk Profile. It’s the highest-ROI setup you’ll do in Trandence.

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Need Help?

If you need help choosing appropriate risk percentages for your Risk Matrix, reach out to us at help@trandence.com — we’re ready to assist you.