Step 1 of 3

Choose a risk budget

Concept

Account risk is position value multiplied by the adverse move to the stop, plus costs and slippage.

Do this

Use a hypothetical $10,000 paper account and define a small maximum loss for one idea.

Why it matters

Sizing from risk makes different instruments comparable.

Common mistake

Using 100% position size because the backtest looked good.

Practice in the real workspace

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