Confused about how to properly account for slippage in risk sizing

asked by u/liam86 · 24d · 2 answers

Hey everyone, still pretty new to actually putting real money on the line, and I've been trying to stick to a 1% per trade risk rule. But when I'm calculating my position size, I'm finding that even on relatively liquid pairs like $EURUSD, I sometimes get slipped a few pips beyond my intended stop. Should I be building in some kind of 'slippage buffer' into my initial stop loss calculation, or is that just something you account for in the overall win rate? How do you factor that into your actual risk sizing?

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Top answers

  • u/daniel.smith· 1 pts· 24d

    That's a really good question and a common dilemma. Many traders do build in a small buffer or a 'slippage cost' into their initial risk calculations, especially for more volatile times or instruments. How significant is this slippage usually for you, and are you trading around major news events?

  • u/emily_lee· 1 pts· 24d

    Ah, the joys of real money vs. demo trading. Slippage is like that unexpected guest who always shows up just as you're about to sit down for dinner. I've found it's less about building a 'buffer' and more about adjusting your expectations – consider it the market's subtle way of reminding you who's boss.

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