What Are The Trade Sizing Rules

The first you need to ensure that you are following the 10% of your account max loss rule. This rule states that the max loss of one single trade should not exceed 10% of your account size. However, if you aren't comfortable with 10% then use less. I personally use 5% of my account per trade because I am not a fan of risk.

Here's some examples based on account size

• $2,000 account - $200 max loss per trade which is 2 $1 wide spreads or 1 $2 wide spread
• $5,000 account - $500 max loss per trade which is 5 $1 wide spreads or 3 $2 wide spread
• $10,000 account - $1,000 max loss per trade which is 10 $1 wide spreads or 5 $2 wide spread

You can also use the trade sizing calculator here!