AI Position Sizing: How Much to Risk on Every Trade

The fastest way to blow up an account isn't a bad call — it's an oversized position. Position sizing protects your capital by determining how much each trade can hurt you.

Why Sizing Beats Prediction

You can't control which trades win. You can control how much you lose on the losers. Traders who size correctly survive the losing streaks long enough to compound the winners.

What AI Factors Into Every Size

• Account risk: how much of your capital you're willing to lose on one trade
• Structure-defined cap: for spreads, the max loss is the width minus premium — no guesswork
• Volatility: tick size and daily range so a stop isn't hit by noise
• Correlation: don't stack oversized bets on the same underlying in different expiries

The Verdict

AI turns position sizing from an impulse into a formula you run before every entry. Your capital becomes something you protect and grow — not a lottery ticket.