👉 You buy . If you hit your stop loss, you lose ~$198 (within your 1% limit). Step 3: Adjusting for Different Market Conditions The 1% rule isn't rigid. Adjust based on volatility :
The pros ask: "How much should I buy?"
Like this guide? Save it. Share it. And next time someone asks "What's the best indicator?"—send them this instead.
You can have a winning strategy (60%+ win rate) and still go broke if you get the position size wrong. Conversely, you can have a coin-flip strategy and be wildly profitable with correct position sizing.
Example: 60% win rate, 2:1 reward → f = (0.6×2 – 0.4)/2 = 40%.*
👉 You buy . If you hit your stop loss, you lose ~$198 (within your 1% limit). Step 3: Adjusting for Different Market Conditions The 1% rule isn't rigid. Adjust based on volatility :
The pros ask: "How much should I buy?"
Like this guide? Save it. Share it. And next time someone asks "What's the best indicator?"—send them this instead. The Definitive Guide To Position Sizing Free
You can have a winning strategy (60%+ win rate) and still go broke if you get the position size wrong. Conversely, you can have a coin-flip strategy and be wildly profitable with correct position sizing. 👉 You buy
Example: 60% win rate, 2:1 reward → f = (0.6×2 – 0.4)/2 = 40%.* The Definitive Guide To Position Sizing Free