Position Sizing

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Pengenalan

1% risiko100 trade rugi → -63%2% risiko100 trade rugi → -87%5% risiko20 trade rugi → -64%Risiko ≤1% setiap trade = paling selamat untuk kekal dalam permainan.
Position sizing — risiko kecil setiap trade = akaun bertahan lebih lama

Position sizing adalah salah satu aspek PALING PENTING dalam trading, tapi sering diabaikan oleh trader baru.

Kenapa penting?

  • Menentukan berapa banyak anda boleh rugi per trade
  • Protect capital dari major drawdowns
  • Membolehkan anda survive losing streaks
  • Foundation untuk long-term profitability

"Position sizing is the difference between amateur and professional traders."


Apa Itu Position Sizing?

Definisi

Position sizing adalah proses menentukan berapa banyak lot/unit yang anda trade berdasarkan:

  • Modal anda
  • Risk per trade
  • Stop loss distance

Formula Asas

Position Size = Risk Amount ÷ (Stop Loss × Tick Value)

Untuk FCPO:
Tick Value = RM 25 per tick per lot

Contoh:
Risk Amount: RM 250
Stop Loss: 10 ticks
Position Size = RM 250 ÷ (10 × RM 25) = RM 250 ÷ RM 250 = 1 lot

The 1-2% Rule

Konsep

Never risk more than 1-2% of your capital on a single trade.

Capital1% Risk2% Risk
RM 10,000RM 100RM 200
RM 20,000RM 200RM 400
RM 50,000RM 500RM 1,000
RM 100,000RM 1,000RM 2,000

Kenapa 1-2%?

Math of survival:

Risk per TradeLosing Streak to Lose 50%
10%7 losses
5%14 losses
2%35 losses
1%70 losses

Dengan 1% risk, anda perlu 70 consecutive losses untuk kehilangan separuh modal!

Ini memberikan anda STAYING POWER.


Cara Kira Position Size

Step-by-Step

Step 1: Determine Risk Amount

Risk Amount = Capital × Risk Percentage

Contoh:
Capital: RM 20,000
Risk: 2%
Risk Amount = RM 20,000 × 0.02 = RM 400

Step 2: Determine Stop Loss (in ticks)

Based on chart analysis:
Support at 4,190
Entry at 4,200
SL at 4,185 (below support)

SL Distance = 4,200 - 4,185 = 15 ticks

Step 3: Calculate Position Size

Position Size = Risk Amount ÷ (SL Ticks × RM 25)
Position Size = RM 400 ÷ (15 × RM 25)
Position Size = RM 400 ÷ RM 375
Position Size = 1.07 lots

Round DOWN to 1 lot

Complete Example

ParameterValue
CapitalRM 20,000
Risk %2%
Risk AmountRM 400
Entry4,200
Stop Loss4,185
SL Distance15 ticks
Tick ValueRM 25
Position Size1 lot

Position Size Calculator

Quick Reference Table

For 2% Risk:

Capital10 tick SL15 tick SL20 tick SL
RM 10,0000.8 (1 lot)0.5 (1 lot)0.4 (0 lot*)
RM 20,0001.6 (1 lot)1.07 (1 lot)0.8 (1 lot)
RM 30,0002.4 (2 lots)1.6 (1 lot)1.2 (1 lot)
RM 50,0004 lots2.7 (2 lots)2 lots
RM 100,0008 lots5.3 (5 lots)4 lots

*Jika calculation < 0.5, don't trade atau reduce SL distance.


Position Sizing Mistakes

Mistake 1: Fixed Lot Size

Salah:

  • "Saya selalu trade 2 lots"
  • Regardless of SL distance or account size

Problem:

  • 2 lots dengan 10 tick SL = RM 500 risk
  • 2 lots dengan 30 tick SL = RM 1,500 risk
  • Inconsistent risk!

Betul:

  • Calculate lot size based on SL for EACH trade
  • Same DOLLAR risk, different lot sizes

Mistake 2: Increasing Size After Wins

Salah:

  • Win 3 trades: "I'm hot! Trade 5 lots next!"
  • Lose next trade: Big loss wipes gains

Betul:

  • Stick to position sizing rules
  • Increase gradually after SUSTAINED profitability

Mistake 3: Decreasing Size After Losses

Salah:

  • Lose 3 trades: "Trade 0.5 lot to be safe"
  • Next trade wins but small profit

Betul:

  • Keep consistent sizing based on % risk
  • Trust your system, not emotions

Mistake 4: All-In Mentality

Salah:

  • "This is a sure winner! 10 lots!"
  • If wrong: Account destroyed

Betul:

  • No trade is "sure"
  • Max 2% risk per trade, always

Position Sizing For Different Scenarios

Scenario 1: Small Account (< RM 10,000)

ChallengeSolution
2% risk = very small amountAccept smaller position sizes
Cannot trade some setupsOnly trade tight SL setups
Slow growthFocus on learning, not earning

Example: RM 5,000 account

  • 2% risk = RM 100
  • With 10 tick SL: Can trade ~0.4 lot
  • Reality: Trade 1 lot with tight SL only

Scenario 2: Medium Account (RM 10,000 - 50,000)

This is the "sweet spot" for learning:

  • Meaningful position sizes
  • Room for proper risk management
  • Can trade most setups

Example: RM 25,000 account

  • 2% risk = RM 500
  • With 10 tick SL: 2 lots
  • With 20 tick SL: 1 lot

Scenario 3: Large Account (> RM 50,000)

ChallengeSolution
Position too large for marketSplit into multiple entries
Slippage on large ordersUse limit orders
OverconfidenceMaintain strict % rules

Scaling: How To Increase Size

When To Increase

Only increase position size when:

  1. Account has grown significantly (e.g., +30%)
  2. Consistently profitable for 3+ months
  3. Win rate and RRR are stable

How To Increase

Gradual approach:

  • Current: 1 lot per trade
  • After sustained growth: 1.5 lots
  • After more growth: 2 lots
  • Never jump more than 50% increase

NOT:

  • "I feel good, let's do 3 lots!"
  • "This setup is perfect, 5 lots!"

Position Sizing With Multiple Positions

Scenario: 2 Active Trades

Rule: Total risk should not exceed 4-6%

TradeRiskNotes
Trade 12%First entry
Trade 22%Second entry
Total4%Within limits

Scenario: Adding To Winner (Scaling In)

Initial trade: 1 lot

  • Entry 4,200, SL 4,190
  • Price moves to 4,220

Add 1 lot:

  • Entry 4,220, SL moved to 4,210 (original + new)
  • Total: 2 lots, locked profit on first lot

Scenario: Correlated Positions

DANGEROUS:

  • Long FCPO 2 lots
  • Long FKLI 2 lots
  • Both will move similarly!

Solution: Count correlated positions together for total risk.


The Math: Why Position Sizing Matters

Example: Two Traders, Same Strategy

Both:

  • 60% win rate
  • Average win: 25 ticks
  • Average loss: 15 ticks
  • 100 trades

Trader A: Proper Position Sizing

  • Consistent 2% risk per trade
  • Starting capital: RM 20,000

Trader B: Random Position Sizing

  • Sometimes 1%, sometimes 5%
  • Starting capital: RM 20,000

Results after 100 trades:

MetricTrader ATrader B
Largest single lossRM 400RM 1,000
Max drawdown12%35%
Emotional stressLowHigh
Final capitalRM 32,000RM 18,000

Same strategy, very different results!


Position Sizing Rules

Rule 1: Calculate BEFORE Entry

Never enter without knowing:

  • How many lots
  • Where is SL
  • What is $ risk

Rule 2: Round DOWN, Not Up

If calculation = 1.7 lots, trade 1 lot. Extra buffer for slippage and safety.

Rule 3: Never Risk More Than 2% Per Trade

No exceptions. Ever. Even if "100% sure" setup.

Rule 4: Adjust For Volatility

Market ConditionAdjustment
Normal volatilityStandard sizing
High volatilityReduce size or widen SL
News eventsReduce size significantly

Rule 5: Account For Overnight Risk

Overnight = Gap risk If holding overnight, consider reducing size or accounting for larger potential loss.


Quick Reference Formulas

Position Size Formula

Position Size (lots) = Risk Amount ÷ (SL ticks × RM 25)

Risk Amount Formula

Risk Amount = Capital × Risk %

Max Loss Formula

Max Loss = Position Size × SL ticks × RM 25

Examples

Given:

  • Capital: RM 30,000
  • Risk: 2% = RM 600
  • SL: 12 ticks

Position Size:

= RM 600 ÷ (12 × RM 25)
= RM 600 ÷ RM 300
= 2 lots

Verify:

Max Loss = 2 lots × 12 ticks × RM 25
         = RM 600
         = 2% of RM 30,000 ✓

Position Sizing Checklist

Before EVERY trade:

  • I know my total capital
  • I have determined risk % (1-2%)
  • I know my SL level (from chart)
  • I have calculated SL in ticks
  • I have calculated position size
  • Position size rounded DOWN
  • Total open risk < 6% of capital

Soalan Lazim (FAQ)

Q: Modal kecil, tak boleh trade 1 lot pun?

A: Options:

  1. Trade hanya setup dengan tight SL
  2. Grow account first before live trading
  3. Trade micro lots if available

Q: Boleh risk 5% jika sangat confident?

A: TIDAK. Overconfidence adalah musuh. 2% max, always.

Q: Kenapa round down?

A: Buffer untuk slippage dan unexpected moves. Better under-risk than over-risk.

Q: Position sizing untuk scalping berbeza?

A: Same principle. Tighter SL means more lots possible, but still limited by 2% rule.


Kesimpulan

Key Takeaways

ConceptRemember
Risk %Never more than 2% per trade
FormulaRisk Amount ÷ (SL × 25)
ConsistencySame % risk, every trade
RoundingAlways round DOWN
VerificationCheck math before entry

Action Steps

  1. Calculate your 2% risk amount today
  2. Create a position size reference table for your capital
  3. Commit to NEVER exceeding 2% per trade
  4. Journal your position sizing on every trade
  5. Review monthly: Are you following the rules?

"It's not about how much you make when you're right. It's about how much you keep when you're wrong. Position sizing protects what you've worked hard to earn."

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