Fixed fractional sizing: how do you calculate yours?
Fixed fractional means risking the same percentage of the account on every trade — 1% is the classic. The maths is simple; the discipline is the hard part, because the percentage wants to drift with confidence.
How do you run it?
- your percentage and how you settled on it
- whether you recalculate per trade or per day
- how the method behaves through drawdowns
The position sizing guide walks through the calculation step by step.
Background: Position sizing: how to risk a fixed percentage per trade
How much you trade matters more than where you enter. A step-by-step method for sizing positions from your stop-loss and the amount you are willing to lose.
How do I calculate lot size from risk?
Divide the amount you are willing to lose by the stop distance in pips multiplied by the pip value per lot. For $50 risk, a 25-pip stop and $10 per pip per lot, that is 0.20 lots.
What is the 1% rule in trading?
A guideline to risk no more than 1% of the account on any single trade, so a losing streak doesn't cause a drawdown you can't recover from. It is a starting point, not a guarantee.
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