🏷️#Position sizing
3 articles
Don't Smooth Out Your Equity Curve in Prop Trading: Why It's the Exact Opposite of Normal Portfolio Management
In investing, conventional wisdom says to suppress volatility. But in prop firm challenges, this flips completely — payouts are decided by a threshold ('did you hit +8% or not'), and downside is capped at the fee. A smoothed-out account never hits the wall, but it also never reaches the target — it just pays the fee and goes nowhere. Testing by scaling lot size on real intraday-anomaly strategies, we found the location of the 'cliff' — where too much lot size backfires — varies more than 3x between strategies: one strategy fell off the cliff and stayed negative past 2.5x, while another kept climbing all the way to 8x.
Funded7's Payout Was Held Under OREF "Rule 1" | Explaining the MIN(median×2.5, Q3+1.5×IQR) Consistency Review With a Real Review Email [September 2026]
A Funded7 payout request came back DELAYED for failing "Rule 1 (Consistency): Position Sizing" R1A. We break down the official FAQ's allowable threshold — MIN(median×2.5, Q3+1.5×IQR) — using real figures from a review email sent to this site's owner (median ¥1,240,946, IQR ¥17,094, threshold ¥1,274,058, largest position ¥1,294,723). Covers why keeping your lot size too consistent shrinks the threshold, why a fixed-lot BTC EA gets caught, how it differs from Rule 2/Rule 3, why profit isn't confiscated, and how to think about passing on the next review.
The Complete Guide to Prop Firm Position Sizing and Lot Calculation: Designing the Right Size by Working Backward From Drawdown
A formula-based breakdown of lot calculation for prop firm accounts. Covers how to set your risk % (around 0.5% during evaluation), working backward from your stop-loss distance, why leverage isn't the same thing as risk, sizing by working backward from daily DD, calculating your tolerance for a losing streak, and the effective risk of correlated positions. Includes worked examples for $50K and $100K accounts.