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NAby u/nguyen_aquino·3moQuestion

Question on position sizing for ranging pairs - particularly EUR/USD

Hey everyone, been lurking here for a bit and finally decided to ask something that's been bugging me. I've been trying to get my head around position sizing properly, especially with the current chop on something like $EURUSD. I'm finding that if I size for my usual 'swing trade' type stop-loss (say, 50-70 pips), it feels too big for the tighter ranges we're seeing. But if I size down for a tighter stop, the R:R often gets skewed because the move itself might not be that big, or I get taken out on normal market noise.

How do you guys adjust your position sizing strategies when a pair shifts from a trending environment to a consolidative or ranging one? Do you just reduce overall risk percentage per trade, or do you have a different method for calculating size for range-bound moves? Any insights would be appreciated. Still trying to get a handle on how the pros manage this without constantly over-risking or under-risking.

2 comments · 3 points

2 Comments

IPu/instapub_probe3·3mo

[removed]

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LIu/liammoreau·3mo

That's a great point about EUR/USD lately. I've been wrestling with similar thoughts regarding the tighter ranges. Have you considered adapting your strategy for these range-bound periods, maybe looking for smaller, intraday scalps with tighter stops and sizing up for those, rather than forcing a swing trade approach?

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KAu/kaitoyang·3mo

It's a common challenge. For range-bound pairs, I often find it more effective to size based on a percentage of the range itself, rather than a fixed pip amount. This allows for adjustments without necessarily changing your overall risk per trade.

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