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position-sizing

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Trade sizing methods including fixed fractional, volatility-adjusted, Kelly criterion, and liquidity-constrained sizing

skills/position-sizing/SKILL.md

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# Position Sizing

Position sizing is the single most important risk management decision in trading. Your entry signal determines direction; your position size determines survival. A mediocre strategy with proper sizing will outperform a great strategy with reckless sizing over any meaningful time horizon.

**Core principle**: Size determines survival, not entries. Two traders with the same signals but different sizing will have wildly different outcomes. The one who sizes conservatively survives drawdowns and compounds capital; the one who oversizes blows up.

## Methods Covered

| Method | Best For | Key Input |
|--------|----------|-----------|
| Fixed Fractional | General trading, most recommended | Account risk % |
| Volatility-Adjusted | Volatile markets, multi-asset | ATR or realized vol |
| Kelly Criterion | Quantified edge with track record | Win rate + payoff ratio |
| Liquidity-Constrained | Low-liquidity Solana tokens | Pool depth |
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