Lot sizing: fixed vs % of equity vs multiplier — when to use which
By Priya V. · · 187 votes · 2 comments · 8789 views
Quick mental model:
- Fixed lot → you trust your own sizing more than the provider's. Safe for prop firms. - Multiplier of source → you want to mirror the provider's risk profile. Dangerous if they go reckless. - % of equity → set risk per trade based on your own balance. Best for funded accounts where the SL is in the signal.
I use % of equity with a 0.5% risk on prop accounts, fixed lot on personal.