This guide explains what the BTC On Air Position Calculator does, how each setting affects the result, and why the calculation model is structured this way.
Current calculator release: Version 1.12.56
Position Risk Report mix marker: The Long / Short Notional Mix bar now shows the actual green Long and red Short notional proportions. A dark marker identifies the target mix calculated from the selected reference ratio. For example, a 4.40× reference corresponds to approximately Long 81.5% / Short 18.5%.
Suggested Adaptive Ratio marker: The Position Risk Report target marker is based on the calculated Suggested Adaptive Ratio, not the manually selected Max Long / Short Notional Ratio. The selected ratio remains available for risk and planning checks.
Displayed LO totals: The Long LO / DCA Plan shows a total for the Between Long Entry and Short Entry zone, while the Short LO / DCA Plan shows a total for the Between Short Entry and Long Entry zone. These totals include only the visible progressive levels in the respective first zone. The matching TP zones are displayed separately and are not included.
Maximum Short LO Amount: This value is a cap, not an amount that must always be used. The first Short LO zone uses the smaller of the maximum budget and the additional Short margin required to reach the selected notional target.
Projected Entry after LO: Each LO/DCA card now estimates the average entry price after the current position and all visible levels in that card’s first zone are filled. The estimate is quantity-weighted using collateral, leverage and each level price. It excludes the separate TP-matching zone and does not include fees, funding, slippage or partial execution effects.
BTC price fallback: The live-price endpoint tries CoinGecko first, then Coinbase and Kraken if the previous source is unavailable. The browser still uses the same-site WordPress endpoint and its five-minute application cache.
Quick start:
- Click Reset Defaults.
- Enter Portfolio Balance.
- Enter Entry Price for Long and Short.
1. What the calculator is for
The calculator separates two different questions:
- Suggested Positions show how the portfolio could be divided between Long and Short according to the BTC price and the ratio boundaries.
- Actual Open Positions describe the positions that are already open: their margin, leverage and entry price.
This separation matters because a suggested allocation is a planning value, while an actual position is a record of what is currently open.
2. Portfolio & Market
Portfolio Balance (USDC)
This is the total portfolio value used by the calculator. It is used to convert percentages into dollar amounts and to calculate the suggested collateral and order sizes.
Current BTC Price (USDC)
The calculator receives the current BTC price through a same-site WordPress endpoint. The endpoint uses a five-minute cache so the browser does not call CoinGecko repeatedly. The fallback price is used when the live service is unavailable.
Portfolio Allocation (%)
Max Long / Short Notional Ratio
This editable value controls the Long LO / DCA target and the Position Risk Report reference. The ratio is calculated from notional exposure: Long Notional / Short Notional. Notional equals Margin / Collateral multiplied by side leverage. For example, with equal leverage, 2.00 means 2x Long notional for 1x Short notional. When leverage differs, the target margin is adjusted to produce the selected notional ratio.
This is the percentage of the total portfolio that the strategy is allowed to use. For example, a 33% allocation means that the Long and Short shares together use 33% of the portfolio, not 33% for each side.
3. Ratio Boundaries
Upper Ratio and Lower Ratio
These values define the allowed relationship between the Long and Short shares. A higher ratio means a stronger preference for Long exposure relative to Short exposure.
Upper Limit and Lower Limit
These are the BTC price boundaries used to adjust the ratio. Between the two limits, the calculator changes the ratio linearly. Outside the limits, it clamps the result so it never goes below the Upper Ratio or above the Lower Ratio.
The adaptive ratio is calculated as:
ratio = MAX(Upper Ratio,
MIN(Lower Ratio,
Lower Ratio - ((BTC Price - Lower Limit)
/ (Upper Limit - Lower Limit))
* (Lower Ratio - Upper Ratio)))
This makes the allocation respond gradually to the BTC price instead of switching abruptly from one fixed split to another.
4. Suggested Long and Short Positions
After calculating the adaptive ratio, the selected portfolio allocation is divided as follows:
Long Share = Allocation × Ratio / (Ratio + 1) Short Share = Allocation / (Ratio + 1)
The two shares add up to the selected Portfolio Allocation. The resulting suggested collateral is:
Suggested Long Collateral = Portfolio Balance × Long Share Suggested Short Collateral = Portfolio Balance × Short Share
This is useful because the calculator shows both the percentage split and the corresponding USDC amount. It also keeps the Long/Short relationship visible instead of hiding it inside a single order value.
5. Actual Open Positions
Long and Short are entered independently. Each side has:
- Margin / Collateral — the collateral assigned to the open position.
- Leverage — the position multiplier used for TP size.
- Entry Price — the actual average entry price.
When Margin / Collateral is left under automatic management, it follows the suggested collateral. Once it is manually edited, the calculator preserves that manual value until the defaults are reset.
Leverage does not change the H4/I4 allocation formula. It is kept with the actual position because collateral and notional exposure are different concepts. It is also used separately when calculating the TP Size for that side.
Actual Open Positions layout: On desktop, Entry Price, Margin / Collateral and Leverage are displayed in one compact row. The layout gives approximately 44% to Entry Price, 44% to Margin / Collateral and 12% to Leverage, with consistent spacing between fields.
6. Position Risk Report
Ratio warning wording: When the actual Long margin is above the selected reference, the report shows the actual amount above the reference and its numeric value, for example: 2.00 Long / Short ratio reference. The message is informational only.
The Position Risk Report is based on the values entered under Actual Open Positions. It does not change, cap or block your Long or Short margin. It is an information and review layer.
Status
- WITHIN PLAN means the total actual margin is within the selected Portfolio Allocation and the Long / Short reference is not exceeded.
- ALLOCATION EXCEEDED means Long Margin plus Short Margin is more than the selected Portfolio Allocation. Review the total margin before adding to either side.
- SHORT RATIO ABOVE REFERENCE means the actual Short / Long margin ratio is above the reference configured in the WordPress dashboard. This is informational only; the calculator does not change the entered value.
Portfolio Allocation and Short / Long meters
The first meter compares total actual margin with the dollar amount allowed by Portfolio Allocation. The second compares current Long notional with the selected Long / Short notional reference:
Allowed Portfolio Margin = Portfolio Balance × Portfolio Allocation Reference Long Margin = Short Margin × Long / Short Reference
The report uses a one-dollar tolerance for small differences caused by displayed rounding. If the total allocation is already exceeded, the Recommended additional Long capacity is $0.00, even if the ratio alone would appear to leave theoretical capacity.
If the Long / Short reference is above its selected value but total actual margin is still within Portfolio Allocation, the warning remains informational and the entered values are not changed. In that situation, the report also shows how much the Long can still be increased by up to before Portfolio Allocation is reached. This is remaining allocation headroom, not a recommendation to add risk.
This can be an intentional workflow: while waiting for price to fall, a user may keep the Long Entry Price as the reference and allow planned LO Long orders to execute below that entry price, provided the total actual Long + Short margin remains within the chosen Portfolio Allocation.
Notional and Net Directional Bias
Margin and notional are different. Notional uses the entered leverage:
Long Notional = Long Margin × Long Leverage Short Notional = Short Margin × Short Leverage
The report shows the Long / Short Notional Ratio and identifies the larger side as the Net Directional Bias: Long, Short or Neutral. This describes the entered exposure; it is not a trading recommendation.
Next check
The final line explains what to review next. For example, when allocation is exceeded, it advises reviewing Portfolio Allocation and total margin before adding to either side. When the limits are available, it shows the remaining capacity subject to both the Portfolio Allocation and the Long / Short reference.
6. LO and TP Size
The calculator uses the selected portfolio allocation to determine one rounded order-size base:
LO Size = ROUND(((Portfolio Balance × Portfolio Allocation) / 75) / 10) × 10
The result is rounded to the nearest 10 USDC. Rounding makes the order size practical and avoids displaying unnecessarily precise amounts that cannot be used as clean order values.
TP Size is calculated independently for Long and Short and represents the notional size assigned to each TP level:
TP Size per level = ROUND((Margin / Collateral × Leverage) / Levels)
The calculation uses the actual Margin / Collateral, the leverage and the number of TP Levels for the relevant side. The multiplication is applied before division:
Long TP Size = ROUND((Long Margin × Long Leverage) / Long Levels) Short TP Size = ROUND((Short Margin × Short Leverage) / Short Levels)
The result is rounded to a full USDC amount and displayed without decimal places. When multiplied by the number of levels, the unrounded total corresponds to the position’s notional exposure.
7. TP Ladder
First TP (auto)
The first TP is calculated from the actual entry price and the First TP Step:
Long First TP = Long Entry + Long First TP Step Short First TP = Short Entry - Short First TP Step
There is no rounding to a price grid. The step is simply added for Long or subtracted for Short. The calculator only accepts a profitable direction: Long TP must be above Long Entry and Short TP must be below Short Entry.
First TP Step and Next TP Step
These are separate because the first target can be intentionally different from the spacing used later in the ladder.
Levels
This controls how many TP prices are generated. Long and Short have independent level counts.
TP Step Multiplier
The multiplier changes the distance between successive TP levels:
- 1.00 keeps every next distance the same.
- Below 1.00, such as 0.95, gradually reduces each next distance.
- Above 1.00, such as 1.04 or 1.07, gradually increases each next distance.
The first TP is not changed by the multiplier. Starting from the first TP, the next distances are compounded. For example, with a 100 USDC Next TP Step:
Multiplier 1.00: 100, 100, 100 Multiplier 0.95: 100, 95, 90.25 Multiplier 1.07: 100, 107, 114.49
This provides a simple way to model a ladder that becomes tighter or wider as price moves further into profit.
TP percentages and gross PnL
Each TP level shows the BTC target price and its percentage difference from the relevant Entry Price. Long percentages are positive above Long Entry; Short percentages remain negative below Short Entry.
Each level also shows an estimated gross PnL calculated independently from that level’s TP Size and Entry Price. The Combined PnL shown below each ladder adds the PnL of the currently displayed levels for that side only.
Long PnL = TP Size × (TP Price − Entry Price) / Entry Price Short PnL = TP Size × (Entry Price − TP Price) / Entry Price
These are gross estimates. The displayed PnL is calculated without any fees, funding costs, spread or slippage. The calculator does not multiply the result by leverage again because leverage is already included in TP Size.
Displayed decimal format
Long and Short Entry Price and Margin / Collateral fields display two decimal places, for example 84,771.00 and 2,333.00. This changes presentation only; the underlying calculations use the numeric values.
Export and Import Strategy
Export Strategy downloads the current calculator settings as a JSON file. The export includes Long and Short inputs, TP Ladder settings, Long LO / DCA settings and manual-margin state.
The file also contains a BTC price snapshot and export timestamp for reference. When importing, the snapshot is not used as the live price. The calculator keeps or refreshes the current BTC price instead.
Import Strategy validates the BTC On Air JSON format, restores the saved settings and displays a confirmation message when the import is complete. Invalid files are rejected without applying their values.
8. Long LO / DCA Plan
The Long LO / DCA Plan is a planning card for adding Long collateral in controlled steps. It uses the same LO Size shown in the Long TP Ladder as the order-count reference, while the actual amounts in the first zone are distributed progressively.
Long / Short reference
Leverage-aware planning: Long LO and Short LO use both side leverages. If Long and Short leverage are different, the same margin ratio does not produce the same notional ratio; the calculator therefore converts the selected notional target back into the required side margin before generating LO levels.
The card uses the editable Max Long / Short Notional Ratio from Portfolio & Market. The ratio is calculated as Long Notional / Short Notional: 1.00 means equal Long and Short margin, while 2.00 means two times more Long margin than Short margin.
Target Long Margin = (Short Margin × Short Leverage × Long / Short Notional Ratio) ÷ Long Leverage Total LO Margin = Target Long Margin − Current Long Margin
The editable Minimum First LO (USDC) value cannot be lower than $10.00. If the remaining target gap is smaller than that minimum, the plan does not create an order that would exceed the target.
Two Long LO zones
- Between Long Entry and Short Entry — the first LO starts with the minimum amount and each following level becomes larger as it moves toward Short Entry. The total of these levels matches the required additional Long Margin.
- Below Short Entry — match Short TP — Long LO levels use the corresponding Short TP prices.
The full plan is preserved so the levels can be reviewed in order. Each level shows its price and amount. The first-zone total is calculated from the additional Long Margin needed to reach the selected ratio.
The two planning cards can be collapsed independently. Collapsing TP Ladder does not collapse Long LO / DCA Plan, and vice versa.
9. Short LO / DCA Plan
The Short LO / DCA Plan is the inverse of the Long LO plan. It moves from Short Entry toward Long Entry and increases the planned amounts as the levels approach Long Entry.
- Maximum Short LO Amount (USDC) sets the maximum total Short LO budget for the first zone.
- Minimum First LO (USDC) controls the first level and cannot be lower than $10.00. Larger values are allowed.
- Between Short Entry and Long Entry contains the progressive Short LO levels.
- Above Long Entry — match Long TP uses the corresponding Long TP prices.
The Long LO card uses green accents and the Short LO card uses red accents to make the two planning directions easier to distinguish. Both cards can be collapsed independently. The summary labels reserve two lines so all value fields stay aligned.
10. Worked example
Assume:
- Portfolio Balance: 5,000 USDC
- Portfolio Allocation: 33%
- Long Leverage: 3x
- Long Entry: 78,490 USDC
- Long First TP Step: 500 USDC
- Long Next TP Step: 500 USDC
- Long TP Step Multiplier: 1.07
The first Long TP is:
78,490 + 500 = 78,990 USDC
The next distances begin at 500, then 535, then 572.45 USDC. The ladder therefore expands gradually instead of repeating the same fixed distance.
10. Defaults and Reset Defaults
The default values are controlled in the WordPress dashboard under Settings → BTC On Air Calculator. The Reset Defaults button clears the calculator’s saved browser values, restores the dashboard defaults, re-enables automatic margin management and recalculates the result.
This means the dashboard controls the starting configuration, while the browser can still remember deliberate changes made during normal use.
11. Important limitations
- The calculator is a planning and position-sizing tool, not a trading signal or a guarantee of profit.
- The adaptive ratio is a defined linear model between two price limits; it does not predict the BTC price.
- LO Size is based on the selected portfolio allocation. TP Size is based separately on the actual side’s Margin / Collateral, Leverage and number of TP Levels. Fees, funding, slippage, liquidation distance and exchange-specific minimums are not included.
- The current TP ladder shows profitable target prices plus one rounded TP Size per level for Long and Short. The displayed rounded values can make the sum of the displayed levels differ slightly from the exact unrounded notional.