Risk and execution
The boundary between chart rules and the trader's account plan.
The chart process identifies a 1-2-3, an eligible PTB, and the first structural decision point. It does not choose an account risk amount for the student.
Source guidance
- Size contracts from entry-to-stop distance.
- Use MNQ when NQ makes the structural risk too large.
- Start at the lowest appropriate risk.
- Define your own per-trade and daily limits before the session.
- Treat personal amounts and trade counts in historical lesson examples as examples, not student requirements.
Stoic Trader's amounts and limits describe his personal workflow. Students need their own written limits.
Open fields
- exact entry buffer
- fill and gap handling
- slippage and cost threshold
- fixed partial quantity
- universal stop hierarchy
- universal trailing precedence
Do not fill these gaps from an old rule or from hindsight.
Position-sizing exercise
Locate structural invalidation, estimate the dollar loss per unit from entry to stop, and divide your allowed risk by that estimate after allowing for costs. Round down to a tradable quantity. If the smallest appropriate unit is too large, skip. Gaps and slippage can exceed the estimate. See the worked stop-loss example.
Evidence limits
No verified expectancy or universal performance result is established by the chart examples. Test a defined instrument, session, entry approach, and execution plan with costs before drawing conclusions.