Trading Plan: Entry, Stop, Fees and Slippage | Kunkafa

An entry price is one line of a trading plan. The useful work happens around it: how much is committed, where the trade ends, what execution costs, and what happens if price takes a different route. Kunkafa helps you think through market scenarios; the plan connects those scenarios to explicit assumptions.

The example below is educational, not a recommendation. It uses an invented instrument with a simple linear payoff: a one-dollar price change produces one dollar of profit or loss per unit. It excludes leverage, currency conversion, funding, borrowing charges and taxes.

Write down the trade before calculating its size

Suppose the hypothetical plan is to buy near $100, exit after a stop trigger at $98, or exit after a target trigger at $104. The model allows $100 of loss under its stop-execution assumptions. That is an example budget, not a suggested amount or a guaranteed maximum loss.

HYPOTHETICAL LONG TRADE
Reference entry:        $100.00
Stop trigger:           $98.00
Target trigger:        $104.00
Entry execution:       $100.10
Stop execution:         $97.80
Target execution:      $103.90
Fee per side:             0.1%
Modeled loss budget:   $100.00

The execution prices include adverse slippage: paying $0.10 more on entry, receiving $0.20 less at the stop and $0.10 less at the target. The target example assumes an exit after its trigger, not a sell limit guaranteed to fill at $104. These are modeling inputs, not estimates for a particular exchange or broker.

Calculate position size after costs

Using only the $2 distance between reference entry and stop suggests 50 units for a $100 budget. Include the assumed fills and fees, however, and each unit has $2.30 of price loss plus $0.1001 in entry fees and $0.0978 in exit fees. Modeled loss becomes $2.4979 per unit.

Dividing $100 by $2.4979 gives approximately 40.03 units. With whole units, round down to 40. The position costs $4,004 before entry fees, and its modeled stop loss is $99.916, or $99.92 rounded. Available capital is a separate constraint: a loss budget does not establish that the position is affordable.

Use the Kunkafa position size calculator to explore quantity and stop distance. Check the resulting execution prices and costs in the Kunkafa trading fee and profit calculator.

Compare the target with the stop

If all 40 units sell at the assumed target execution price of $103.90, gross profit is $152. Entry fees are $4.004 and target-exit fees are $4.156. Net profit is therefore $143.84. At the assumed stop fill, gross loss is $92 and total fees are $7.916, producing the $99.92 modeled loss.

40 UNITS, WITH THE ASSUMED FILLS
Target outcome:    +$143.84 after fees
Stop outcome:       -$99.92 after fees
Reward / risk:       about 1.44

Reference-price arithmetic without costs:
$160 target gain / $80 stop loss = 2.00

The Kunkafa risk reward calculator helps compare planned outcomes. For a simplified model containing only these two outcomes, the break-even win rate is about 41%: loss divided by loss plus gain. Real trades can also have partial fills, early exits and other outcomes.

Keep the forecast and the trade outcome separate

Kunkafa shows possible moves in both directions, with probabilities and durations. That helps you consider what could happen next. A probability of reaching the upward level is not automatically the probability that this trade earns $143.84.

Price might reach the stop first and the target later. The order might fill differently, or the forecast duration might extend beyond the planned holding period. Record the forecast's market, level, direction and duration alongside the trade assumptions. Learn more in Kunkafa's guide to why both market outcomes remain possible.

Check execution and review what actually happened

A stop trigger does not guarantee its execution price. A stop-limit order adds a price restriction but can remain unfilled. The SEC explains these distinctions in its investor bulletin on stop and stop-limit orders. Check your broker's order rules before relying on an execution assumption.

Write down an expiry or review time, how unfilled orders will be handled, and which costs the model excludes. Afterward, compare actual fills, fees and exit reasons with the plan. Kunkafa can help you read market scenarios; a complete record shows how your particular execution turned out.