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Position sizing with 1R
Risk comes first. Sizing every trade from a fixed risk unit (1R), daily and weekly loss limits, and the arithmetic of drawdowns.
Risk · Oct 23, 2026 · 7 minPosition sizing with 1R: turn a stop into a contract countHow to set a fixed risk unit, convert any stop into a contract count for MES or MNQ, round down, include costs, and skip trades that do not fit.Risk · Oct 23, 2026 · 7 minExpectancy beyond win rate: what a trade rule earns per trade in RHow to calculate expectancy in R, find the breakeven win rate for any target after costs, and see why 20 trades say little about an edge.Risk · Oct 23, 2026 · 7 minDrawdown math and risk of ruin: why small risk per trade survivesThe arithmetic of drawdowns: recovery gains, what losing streaks do at each risk level, how often streaks happen, and drawdown rules to write down before one.Risk · Oct 23, 2026 · 7 minA daily loss limit you will actually respect: size it, define it, automate itHow to set a daily loss limit in R and as a percentage of the account, define what counts toward it, add weekly and monthly caps, and stop mechanically.Get an email when new guides and the micro E-mini playbook are published.
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