Fixed-fraction position sizing
Risking a fixed 1–2% of capital per position keeps any single loss small and makes long losing streaks survivable. Recalculate the amount as your balance changes.
Drawdown recovery
| Loss | Gain needed to recover |
|---|---|
| 10% | 11% |
| 25% | 33% |
| 50% | 100% |
| 75% | 300% |
Break-even accuracy for fixed payouts
Break-even accuracy = 1 ÷ (1 + payout)
At an 80% payout you must be right about 55.6% of the time just to break even — before mistakes and emotions.
Session rules worth writing down
- 01Maximum loss per day (e.g. 3% of capital).
- 02Maximum number of trades per session.
- 03A pause after two consecutive losses.
- 04No trading when tired, rushed or emotional.
- 05Never increase stake to recover losses (martingale).
