Position Sizing
Control how much capital is risked on each trade.
The Position Sizing block determines how large each trade is. This is arguably the most impactful risk management decision — it controls how much you gain on winners, how much you lose on losers, and ultimately how quickly your account grows or shrinks.
Why It Matters
Even the best strategy will blow up an account with poor position sizing. Too large, and a string of losses wipes you out. Too small, and your winners don't grow the account meaningfully. Proper position sizing is what turns a good strategy into a sustainable one.
Settings Explained
Method — How position size is calculated:
- Risk Percent — Calculates the lot size so that if your stop loss is hit, you lose exactly X% of your account. This is the professional standard. Example: 1% risk means if your stop is 50 pips and you have a $10,000 account, the lot size is automatically calculated so that 50 pips of loss equals $100
- Fixed Lots — Uses the same lot size for every trade regardless of account size or stop distance. Simple but doesn't adapt to conditions
- Fixed Amount — Risks a specific dollar amount per trade. Similar to Risk Percent but uses a fixed number instead of a percentage
- Equity Percent — Uses a percentage of your current equity as the position size. As your account grows, positions grow with it. As it shrinks, they get smaller
Risk Percent — The percentage of your account to risk per trade. Only used with 'Risk Percent' method. Common values: 0.5% to 2%.
Lot Size — The fixed lot size. Only used with 'Fixed Lots' method.
Amount — The fixed dollar amount to risk. Only used with 'Fixed Amount' method.
Equity Percent — The percentage of equity to use. Only used with 'Equity Percent' method.
Example Use Case
You use Risk Percent mode with 1% risk. On a $10,000 account with a 50-pip stop loss, Tradient calculates the exact lot size so that a full stop loss equals a $100 loss (1% of $10,000). If your stop is wider at 100 pips, the position is automatically smaller. If it's tighter at 25 pips, the position is larger. Your dollar risk stays constant.
Risk Percent is the professional standard for a reason: it automatically scales with your account and adapts to different stop distances. Most professional traders risk between 0.5% and 2% per trade. Start at 1% if you're unsure.
Never risk more than 2-3% of your account on a single trade, especially when starting out. A string of 5 losses at 5% risk each would cost you 25% of your account — a hole that's very hard to climb out of.