Core concept12 min readCore
Position sizing: the only risk lever you fully control
You cannot control whether the next trade wins. You can control exactly how much it costs you when it loses. That asymmetry is the whole game.
1×2×4×8×16×32×
1% risk per trade5% risk per tradeSolid line = median · Shaded band = 10th–90th percentileStarting capital
Each faint trail is one simulated future for this strategy. The bold line is the median — half of runs finished above it, half below. The shaded band spans the lucky 10th to unlucky 90th percentile, so an outcome inside the band was reasonable to expect; outside, less so.
[PLACEHOLDER-ARTICLE — full body to be written. This stub exists so the /learn/ hub, the homepage guide links, and the article template have a real document on the risk-money-mgmt track to render.]
Position size, in one line
Size = (Balance × Risk%) ÷ (Stop distance × Value per unit)
Notice what is not in this formula: your conviction, the setup's "quality," or how sure you feel.