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HWby u/hugo.weber·18dQuestion

Struggling with position sizing and the 'edge' concept

Hey everyone, been lurking for a bit and finally decided to post. I've been paper trading for about six months and recently dipped my toes into a live account with a small sum. I'm trying to wrap my head around position sizing properly. I get the basic math — risk a fixed percentage per trade, say 1-2%, calculate shares based on stop loss. But what I'm grappling with is how that interacts with the idea of an 'edge'.

If my win rate is, hypothetically, 50% with a 1.5R average, that's positive expectation. But how confident do you really need to be in that edge before you start sizing up beyond the absolute minimum? Is it purely about a statistically significant sample of trades, or is there a qualitative feel to it as well? I've heard people talk about 'feeling' their edge, but that just sounds like intuition which usually leads me astray. Any insights on how you guys transitioned from micro-sizing to more standard risk per trade once you felt you had something concrete?

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