Stop oversizing by moving the rule before the trade

Oversizing is rarely a math failure — the math takes one line. It is a sequencing failure: the size gets chosen while looking at the chart, and the rule is consulted afterwards, if at all. The fix is mechanical. Decide the loss first, derive the size from it, and put one deliberate pause between a stop-out and the next entry.

Account equity (USD)

Risk cap (%)

Intended size (base units)

Entry price

Stop price

Compliant size

0.083

Intended size is

1.80% risk

The oversize is 0.067 base units. That gap is conviction, priced — the checklist below runs before it reaches the ticket.

The pre-trade checklist

The stop exists before the size does — the loss is decided first.
The size comes from the rule, not from conviction: budget ÷ risk per unit, truncated down.
The all-in number includes fees and adverse fill, not just the stop distance.
Total open exposure after this entry still fits the exposure cap.
If today's loss budget is spent, there is no entry to size.

One cooling-off mechanism is enough: after any stop-out, a fixed pause — length chosen by you in a calm moment — before the next entry. Not because the next idea is wrong, but because the sizing hand is not yet yours again.

Check my intended size →

The free check runs the same comparison with fees and slippage included, and records the decision either way.

What this covers

A process for the moment before the order ticket — not a diagnosis and not a cure for revenge trading.

The comparison below uses raw stop distance; the full check adds fees and adverse fill, which shrink the compliant size further.

Formula and assumptions

Compliant size = (equity × risk cap) ÷ |entry − stop|, truncated down.

Intended risk = |entry − stop| × intended size ÷ equity.

The gap between them is the oversize — visible as a number, not a feeling.

Worked example

Example — the gap made visible.

Rule1% of $10,000 = $100

Stop distance$1,200 per BTC

Compliant size0.083 BTC

Intended size0.15 BTC = 1.8% risk

The oversize0.067 BTC — conviction, priced

Common mistakes

Sizing on the chart and checking the rule after — the order of operations is the whole problem.

Widening the stop to make the intended size 'fit'. The loss grew; nothing fit.

Doubling after a stop-out to win it back — the moment the cooling-off rule exists for.

Treating one compliant week as permission to retire the checklist.

Limitations

This is arithmetic on numbers you supplied. It does not know your broker, your account, or the market. It does not predict price, does not say whether to take a trade, and is not advice. Maximelion is not affiliated with any broker or prop firm, and nothing here is endorsed by one.

Risk-rules template Position size Risk per trade Perpetual Desk

Last reviewed 31 July 2026