Constant %✓ Mathematical
◆ The PatternRisk a constant percentage of equity on each trade
Fixed fractional sizing sets position size so the dollar risk (distance to stop × shares) equals a fixed fraction f of current equity.
Position = (Equity × f) / (Entry − Stop)
Typical f values: 0.5 %–2 %. This keeps risk proportional to equity — positions shrink after losses and grow after gains, providing natural anti-martingale behavior.
// Interactive — risk fraction and equity curve
Risk fraction %
Ruin probability. At 1 % risk per trade, you need 100 consecutive losers to lose everything — functionally impossible.
Pattern bridge: Stop distance interacts with ATR-based stops.