Why sizing is the decision that matters most
More accounts are blown by position size than by bad entries. Sizing is where risk actually lives — TalixTrade gives you four methods so you can size by a rule instead of a gut feeling.
The four methods
- •Fixed % — a simple share of your deposit per position. Predictable, but it ignores both volatility and your edge.
- •Risk-per-trade — size so that hitting your stop loses a fixed amount (e.g. 1% of capital). Size scales with your stop distance: a tight stop allows a bigger position, a wide stop a smaller one. This is the disciplined default.
- •ATR-based — scale size to current volatility, so a calm market and a wild one don’t get the same exposure.
- •Kelly — the mathematically optimal fraction from your win rate and win/loss ratio.
Kelly, honestly
Kelly needs three inputs: the win rate (share of winning trades), the win/loss ratio (average win size ÷ average loss size), and the fraction — how much of full Kelly you actually use. Full Kelly is extremely volatile, so most traders run quarter- to half-Kelly (0.25–0.5) for stability.
In-product example
Risk-per-trade at 1% with a stop 2% away sizes the position so that a stop-out costs exactly 1% of your capital — the same dollar risk whether the stop is near or far.
The pitfall
Feeding Kelly fantasy inputs. An inflated win rate from an overfit backtest makes Kelly demand a dangerously large size — Kelly amplifies the error in your estimate. Take win rate and win/loss from an honest walk-forward, use a fractional Kelly, and when in doubt prefer plain risk-per-trade. The optimal bet on wrong numbers is a fast way to ruin.
Next
Lock what you make with System protection (Roof-In), and get honest win-rate numbers in Test Lab & Proof.