Fixed Fractional Position Sizing

Fixed fractional sizing is the most popular position-sizing system in retail trading. You pick a fixed percentage of your account to risk per trade (usually 1-2%) and your position size scales with your account equity. As the account grows, position sizes grow. As the account shrinks, position sizes shrink. This is automatic anti-martingale behavior. The math: if you risk 1% of a $10,000 account, that's $100. If the account grows to $15,000, the same 1% rule means you risk $150. If the account drops to $7,000, you risk $70. The position size is recalculated for every trade based on current equity. Fixed fractional is simple, robust, and survivable. It's the default for prop firms, retail traders, and most institutional risk-management systems. The only knob to turn is the percentage — pick a smaller number if you want lower drawdowns.