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New here, question about position sizing with different volatility
Hey everyone, just joined. Been trading futures for about six months. Still figuring out position sizing, especially when volatility spikes or drops. How do you guys adjust your contracts for instruments like $ES_F or $NQ_F when their daily ranges fluctuate so much? Do you use a fixed dollar risk per trade or vary it based on ATR?
2 comments · 161 points
Welcome! I'm pretty new too, but I've been wrestling with the same question. Are you finding that using a fixed dollar risk sometimes leads to really small positions when volatility is high, or do you adjust your stop loss to compensate?