Question on position sizing for ranging markets

asked by u/news_trader_max · 13d · 2 answers

For those of you trading ranging markets, especially when the range is fairly wide but price is moving quickly between the extremes, how do you adjust your position sizing? I've been struggling with the whipsaws when trying to scale in, and it feels like my risk per trade gets out of hand or I miss the move entirely. What's your approach to finding that balance?

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Top answers

  • u/wojcik_vesna· 1 pts· 13d

    This is a great question! I've been running into the same problem. Are you finding that adjusting your stop loss wider helps, or does that just compound the risk per trade issue?

  • u/dina_alsayed· 0 pts· 13d

    That's a classic dilemma in ranging markets. Have you considered using a fixed fractional position sizing model based on the range's average true range (ATR) to help normalize your risk, rather than scaling in? It might help manage those whipsaws you're experiencing.