Trading Concept
Position Sizing
The process of determining how much capital to allocate to a single trade, balancing potential return against risk of loss.
Position sizing is the most consequential decision in any strategy. Entry timing, signal quality, and execution speed matter — but they are secondary to how much is at risk on each trade. A strategy with a 60% win rate can still blow up if the losing 40% are oversized.
The botwir3 builder offers three sizing modes: conservative, moderate, and aggressive. Each mode maps to a Kelly multiplier range. Conservative uses 0.10–0.15x Kelly, moderate uses 0.20–0.30x, aggressive uses 0.40–0.60x. The user selects the mode and can override the multiplier directly.
The gate checks every proposed position against the configured sizing constraints before the adapter submits it. A position that exceeds the maximum allowed size is rejected. The rejection is recorded in the ledger. This is the discipline layer at work — the strategy proposes, the gate validates, the user configured both.