Position sizing
Size from the stop
Position size ties risk together. First decide how much money you're willing to lose on the trade. Then: size = money at risk ÷ distance to your stop. A wider stop means a smaller position, so the money you can lose stays the same.
Remember: Decide the loss first, then the size.
Test yourself
Your stop is twice as far away as usual. To keep the same risk you should…
Halve the position sizeTwice the distance at half the size = the same money at risk.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.