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1. The base formula
| Variable | Meaning | Example |
|---|---|---|
| Risk per trade | How much you can lose | $150 |
| Stop | Distance to invalidation | 10 ticks |
| Tick value | Dollar value per tick | $12.50 |
Contracts = allowed risk / (stop in ticks x tick value). That looks simple, but it only works if the allowed risk was decided first and does not change on impulse.
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2. Symbol examples
| Symbol | Stop | Target risk | Approx. contracts |
|---|---|---|---|
| MES | 8 points | $120 | 3 |
| ES | 8 points | $120 | 0-1 |
| MNQ | 12 points | $150 | 2 |
| NQ | 12 points | $150 | 0-1 |
Sizing is not about maximizing contracts. It is about preserving survival and letting the edge play out over time.
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3. Sizing by account size
- Small account: use micros and smaller stops until the curve stabilizes.
- Medium account: increase only after a consistent discipline streak.
- Large account: do not use the capital as an excuse to abandon per-trade limits.
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4. Common mistakes
- 1Calculating contracts before defining the stop.
- 2Changing the stop at random just to fit more contracts.
- 3Ignoring commissions and slippage.
- 4Not reducing size when the symbol gets more volatile.
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5. TraderPilot recommendation
If sizing is automated or enforced inside the platform, you reduce the most common error: the extra contract that appears once you are emotional. That is the difference between a plan and a reaction.