TradingCalcShould I Average Down?
WORKFLOW · POSITION AVERAGING · STANDARD
See exactly how much more you'd be risking by adding to a losing position, compared to buying the same total size fresh at today's price - new average entry, liquidation, breakeven, and total risk at your stop-loss, before and after.
A fresh entry at today's price would risk meaningfully less for the exact same final size.
Add a stop-loss and leverage to see the full breakdown: liquidation, breakeven, and total risk before and after.
Check the new position's Risk / Reward →Using this in a bot or AI agent?
View API & MCP docs →Why this asks a harder question than "what's my new average price?"
Lowering your average entry feels like it’s making the position safer. What it actually does is commit more capital at the exact moment the market has disagreed with you most strongly. This tool runs the one comparison that makes the real cost visible: what you’d lose at your stop-loss with the blended position, against what you’d lose buying that same total size fresh, right now, at today’s price.
For any genuine average-down, the blended entry is mathematically always worse than today’s price, so the loss at your stop is always larger than the clean-entry alternative, not just usually, provably. This tool reports exactly how much larger, plus whether your new liquidation price has crept past your own stop-loss.
Where to go next
Building a position in planned stages from the start, rather than reacting to a loss? Use DCA Entry instead. Once you’ve decided on the new blended entry, check Risk / Reward against a fresh stop and target.
Use via API or MCP
This average-down comparison is available as a deterministic call, workflow.run_average_down: useful for bots or AI agents that need the blended entry and the extra loss at the stop before adding to a position.
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Free, no signup. Keep the text link in the code exactly as given, with its address and its words: it is the attribution and it points visitors to the full calculator. Change colors, size and start values or read the installation guide and FAQ.
What assumptions and edge cases does this calculator use?
Entry price, size, add price, add size, stop loss and leverage must be above zero. Fees are fractions from 0 to 0.05 (defaults 0.0002 and 0.0005). For a long the stop must be below the add price and for a short above it; otherwise you get an error. The risk comparison is meaningful only when the add is at a worse price than the existing entry. Not covered: funding, slippage, a stop that gaps through, and whether the market will recover.
Isn't averaging down just lowering my average cost?
It lowers your average entry price, yes, but it also means committing more capital to a position that's already moved against you. This tool measures the actual cost of that trade-off: how much more you'd lose if stopped out, compared to simply buying the same total size fresh at today's price instead.
Why compare against "buying fresh at today's price" specifically?
Because it's the one directly comparable alternative: same total size, same stop-loss, same moment in time. A genuine average-down (adding to a long as price falls, or a short as price rises) always produces a blended entry price strictly worse than today's price, so the dollar loss at your stop is always larger than this hypothetical clean entry - not just usually, provably.
What does "liquidation before stop" mean?
Your new, blended position's liquidation price has moved to a level at or beyond your own stop-loss. If that happens, the exchange force-closes your position before your stop-loss order ever gets the chance to trigger, at whatever price liquidation executes at, not the price you planned to exit at.
Does this work for a short position too, or only longs?
Both. For a short, "averaging down" means adding to the position as price rises against you, mirroring the long case exactly, with the same identical-exposure comparison against a fresh short entered at today's price.
Does this tool ever say averaging down is fine?
Yes, when the extra risk is small, it verdicts "Reasonable Add." The point isn't to refuse the calculation, it's to make the actual cost visible every time, since a pyramid adds size precisely when the position has already moved against you, and that cost is easy to underestimate without seeing the numbers side by side.