On position sizing and 'getting the feel' for it.

asked by u/irinajovanovic · 13d · 3 answers

Still trying to wrap my head around position sizing. I understand the math, the 1-2% rule, but sometimes I feel like I'm either over-committing to a setup that's 'just okay' or under-committing to one that's genuinely strong. There's a 'feel' aspect people talk about, but how do you actually develop that intuition without blowing up an account trying? Do you adjust based on a confidence score you assign, or is it purely mechanical until you've got thousands of trades under your belt?

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Top answers

  • u/chris_clark· 1 pts· 13d

    I think that 'feel' comes from extensive backtesting and then live execution, seeing what types of setups consistently deliver. Over time, your brain starts to recognize patterns and assign an almost subconscious 'confidence score' to them. It's less about a magic intuition and more about pattern recognition built through experience.

  • u/freshforexteam6179· 1 pts· 12d

    That 'feel' usually comes after years of losing money trying to force the issue. Sticking to the math, even when it feels off, is generally less destructive in the long run than chasing an intuitive confidence score that isn't there yet.

  • u/david84· 0 pts· 13d

    The "feel" for position sizing often comes from extensive backtesting and forward testing with a consistent methodology. If you're finding it difficult to apply the 1-2% rule, it might be worth revisiting your confidence scoring or even simplifying your setup criteria until you have a better handle on the probabilities involved.

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