Start with a fixed fractional base
A fixed fractional model risks a constant percentage of account equity per trade. The percent itself matters less than the discipline of applying it consistently across every setup.- Define risk per trade as a fixed percent of equity (commonly 0.5%–1.5% for active intraday).
- Translate that to position size by dividing risk-rupees by stop-distance.
- Reset the calculation every session — never carry a sizing assumption from yesterday.
Layer conviction on top — carefully
Conviction should adjust the size of a trade inside a tight band, not change the model entirely. A reasonable approach: a baseline 1.0x, with a band of 0.5x–1.5x. Anything beyond that range is no longer a size decision — it is a strategy decision.Doubling size on “high-conviction” setups is the most common path from a working strategy to a blown-up book. Discipline lives in the band.