A position-sizing system where you risk a fixed percentage of your current account equity on every trade — the standard for retail traders.
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.
Most prop firms force fixed fractional sizing as part of their challenge rules. FTMO, MyForexFunds, and others typically cap risk at 1% per trade and 5% per day across the entire account.
Frequently asked about fixed fractional position sizing
What is a fixed fractional position sizing in trading?+
A position-sizing system where you risk a fixed percentage of your current account equity on every trade — the standard for retail traders.
When will I see fixed fractional position sizing used in real trading?+
On every position size calculator and in every professional trading plan.
What is the most common mistake traders make with fixed fractional position sizing?+
Setting the percentage too high. 1% per trade is conservative but survivable. 5% per trade is aggressive and can wipe out an account on a normal losing streak.
What do experienced traders know about fixed fractional position sizing that beginners don't?+
Use 0.5% per trade for the first 100 live trades while you prove your edge in real conditions. Once you have 100+ trades of confirmed positive expectancy, scale to 1%.
Read the lesson here. Mark the chart on TradingView. Compare brokers with the checklist.
TradingView is the chart workspace most learners already recognize: watchlists, alerts, drawings, and clean multi-market charts. Broker research stays methodology-first: jurisdiction, costs, platform, withdrawals, and risk before any account decision.