Fixed-fraction sizing, fixed-dollar sizing and the risk of ruin
Compare risking a fixed percent of the current balance with risking a fixed dollar amount, and see which lowers the chance of ruin.
Module 13 of 26, How much to risk, and surviving losing streaks. Lesson 6 of 6, about 16 minutes.
The takeaway
Fixed-fraction sizing caps how much of a smaller account is at risk. For most traders, that is safer than keeping dollar risk flat.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.
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