Trader Dale Volume Profile

Money management
Position sizing
It is very important that you use the same position size for all your trades. If, for example, you
decide to risk 2 % of your account balance per trade, you need to stick to this rule. Your SL or PT
pip value can change from trade to trade, but your risk per trade needs to remain the same.
Some traders like to adjust their position size also according to their
"feeling" about the trade they are going to take. If they really like the
scenario and feel very positive about their trade, they risk more. If they
are not so sure, they risk less. I am not really a fan of this approach
because of two reasons. The first reason is that a "feeling is not
something you can measure. The second reason is that in my
experience, the trades that don‘t look so perfect have about the same
chance of success as the best looking ones. In fact, I have seen so many
really good looking trades go wrong that I am actually a bit concerned
when I see a perfectly looking trade.
Because of this, I stick to a firm plan and trade all my trades with the
same position size.
Trades that don‘t
look so perfect
have about the
same chance of
success as the
best looking ones.
I need to point out that different types of trades CAN vary as far as the position size is
concerned. You can risk for example 2 % on standard intraday trades, 1 % on reversal trades and
3 % on swing trades. But, you need to stick to those numbers and don’t risk for example 1 % on
one intraday trade and 3 % on another intraday trade just because you believe in the trade more.
There are many position size calculators on the internet (sometimes also part of a trading
platform). You can use for example this one: https://www.babypips.com/tools/position-sizecalculator
You don’t need to calculate your position size with every change of your trading balance. What I
suggest is this:
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