1. What is position sizing?
Position sizing determines how much to commit to a single trade. The source calls it one of trading's most important yet most overlooked factors.
2. The 2% rule
📊 Do not risk more than 2% on one trade
Capital: $10,000
Maximum risk: $10,000 × 2% = $200
If the stop is $1,000 away from entry:
Position size = $200 ÷ $1,000 = 0.2 BTC.
3. Preparing for consecutive losses
With the 2% rule, approximately 82% of capital remains after ten consecutive losses. An all-in risk can end the account after one loss.
4. Calculating position size
- Position size = (capital × risk percentage) ÷ stop distance.
- A closer stop means a larger position for the same risk.
- A wider stop means a smaller position.
5. Dynamic AI sizing
The original guide describes NOONOO TRADING as dynamically adjusting position size according to expected value, EV: larger when probability is favorable and smaller when conditions are uncertain.
🃏 Dynamic sizing based on EV
Explore AI that adjusts positions according to expected value.
Start in the bot