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Old 06-10-2009, 03:27 PM
JForex78 JForex78 is offline
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Risk Allocation and Position Size Problem.

Hi,

I am facing a problem with position sizes.

My winning trades have over 200 pips at times, and losing trades only lose a few pips like 30 pips. Still, my losing trades lose equal or more money than my winning trades due to position size.

I risk 3% of my equity on all trades. If thats $300, and my stop is 30 pips, the position size is 1 lot. If this trade loses, I lose $300. Now some trades have wider stops. With the same $300 Risk, the position size is smaller, lets say 0.2. Now this 0.2 lot trade wins 200 pips and makes $400, but is almost a waste because only 30 pips have lost $300.

Does anyone else have similar problems? How do you guys handle this?

Is it wrong to allocate equal dollar risk to all trades?

Last edited by JForex78; 06-10-2009 at 03:31 PM.
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