# Risk Manager

> Risk Manager Skill

- Skill: `omerfarooq223/risk-manager` (Agent Skill, multi-file: 3 files)
- Install (CLI): `npx skillmds@latest add omerfarooq223/risk-manager`
- Raw SKILL.md: https://api.skillmd.com/api/skills/omerfarooq223/risk-manager/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: omerfarooq223 (https://skillmd.com/u/omerfarooq223)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/omerfarooq223/risk-manager

---

# Risk Manager Skill

## Overview
The Risk Manager skill automates the calculation of position sizing and risk-to-reward ratios for your SOL trades. It addresses the time-consuming task of manually calculating position sizes based on your portfolio balance and risk management principles.

## Components
- `calculate_risk.py`: Python script that calculates position size and risk-to-reward ratio

## Usage
When planning a new SOL trade, Claude should execute the calculate_risk.py script with three inputs:
```
python calculate_risk.py <total_portfolio_balance> <entry_price> <stop_loss_price>
```

For example:
```
python calculate_risk.py 10000 25.50 23.00
```

This will calculate:
- Position size based on risking exactly 1% of the total portfolio balance
- Risk-to-reward ratio assuming a standard 3:1 take-profit target
- Additional risk management metrics

## How Claude Should Use This Skill
1. When the user is planning a new SOL trade, extract the required inputs:
   - Total portfolio balance (in USD)
   - Entry price for SOL (in USD)
   - Stop loss price for SOL (in USD)
2. Execute the calculate_risk.py script with these three values
3. Interpret the results for the user, highlighting:
   - The recommended position size in SOL
   - The position value as a percentage of the total portfolio
   - The risk-to-reward ratio
   - Potential profit and loss amounts

## Output Information
The script provides the following calculations:
- Recommended position size in SOL
- Dollar value of the position
- Position size as a percentage of total portfolio
- Dollar amount at risk (1% of portfolio)
- Take profit price based on 3:1 reward ratio
- Potential profit and loss amounts
- Risk-to-reward ratio

## Risk Parameters
- The script defaults to risking 1% of the total portfolio balance
- The script assumes a 3:1 reward-to-risk ratio for take-profit targets
- These parameters can be modified in the script if different risk management strategies are needed

## Error Handling
The script includes error handling for:
- Invalid numeric inputs
- Negative or zero values for portfolio balance or prices
- Entry price lower than or equal to stop loss price (invalid for long positions)
- Incorrect number of command-line arguments

If the script encounters an error, Claude should verify the input values and ensure they follow the correct format.

## Dependencies
The script uses only built-in Python libraries (sys, math, decimal) and does not require any external dependencies.

## Example Output

```
{
   "total_portfolio_balance": 10000.0,
   "entry_price": 105.0,
   "stop_loss_price": 100.0,
   "take_profit_price": 120.0,
   "position_size_sol": 2.0,
   "position_value_usd": 210.0,
   "position_percentage_of_portfolio": 2.1,
   "dollar_amount_at_risk": 100.0,
   "potential_profit": 30.0,
   "potential_loss": 10.0,
   "risk_percentage": 1.0,
   "reward_ratio": 3.0,
   "risk_to_reward_ratio": 3.0
}
```