position-sizinglisted

# Position Sizing Position sizing is the single most important risk management decision in trading. Your entry signal determines direction; your position size determines survival. A mediocre strategy with proper sizing will outperform a great strategy with reckless sizing over any meaningful time horizon. **Core principle**: Size determines survival, not entries. Two traders with the same signals but different sizing will have wildly different outcomes. The one who sizes conservatively survives drawdowns and compounds capital; the one who oversizes blows up. ## Methods Covered | Method | Best For | Key Input | |--------|----------|-----------| | Fixed Fractional | General trading, most recommended | Account risk % | | Volatility-Adjusted | Volatile markets, multi-asset | ATR or realized vol | | Kelly Criterion | Quantified edge with track record | Win rate + payoff ratio | | Liquidity-Constrained | Low-liquidity Solana tokens | Pool depth | | Anti-Martingale | Trend-following strategies | Recent P&L streak | --- ## 1. Fixed Fractional Sizing The most recommended method for most traders. Risk a fixed percentage of your account on each trade. ### Formula ``` risk_amount = account_value * risk_percentage price_risk_per_unit = entry_price - stop_loss_price position_size_units = risk_amount / price_risk_per_unit position_value = position_size_units * entry_price ``` ### Risk Tiers | Tier | Risk Per Trade | Use Case | |------|---------------|----------| | Conservative |