Fixed Lots vs Smart Position Management: Why Simple Isn’t Always Better – My Trading – 26 August 2025

Here is an uncomfortable reality about EA buying and selling:

The “hold it easy” crowd has been mendacity to you.

They preach fastened tons prefer it’s gospel. “By no means change place sizes!” they scream. “That is how accounts blow up!”

In the meantime, the merchants truly making constant earnings? They’re quietly utilizing sensible place administration to maximise positive aspects whereas controlling threat.

Immediately’s actuality test: I will present you precisely why the “easy is best” philosophy is likely to be costing you 40% of your potential earnings.

The Mounted Lot Doctrine

What Everybody Teaches

Open any buying and selling discussion board and you may see the identical recommendation:

• Use fastened place sizes
• By no means enhance tons after losses
• Hold it easy and secure
• Complexity equals hazard

Sounds logical, proper?

Let’s take a look at that logic with actual knowledge.

The Mounted Lot Actuality: A Case Examine

90-Day Efficiency Evaluation

I ran similar alerts by means of two methods for 90 days:

Take a look at Setup:

• Account: $10,000
• Pair: GBPUSD
• Technique: Development following with 82% win price
• Danger: 1% base per commerce

System A: Mounted Heaps

Place measurement: 0.10 tons (all the time) Danger per commerce: $100 (all the time) Restoration methodology: Await wins

Outcomes after 90 days:

• Complete trades: 127
• Wins: 104 (82%)
• Losses: 23 (18%)
• Web revenue: $1,847
• Max drawdown: $423 (4.2%)
• Longest restoration: 19 days
• ROI: 18.5%

System B: Good Place Administration

Base measurement: 0.10 tons
First restoration: 0.13 tons (1.3x)
Second restoration: 0.15 tons (1.5x)
Max publicity: 5% account

Outcomes after 90 days:

• Complete trades: 127
• Wins: 104 (82%)
• Losses: 23 (18%)
• Web revenue: $2,614
• Max drawdown: $578 (5.8%)
• Longest restoration: 7 days
• ROI: 26.1%

The distinction: 41% extra revenue with just one.6% further drawdown.

Breaking Down Good Place Administration

What It Really Means

Good place administration is not about playing extra when shedding. It is about:

1. Recognizing market context
2. Adjusting to volatility
3. Capitalizing on high-probability setups
4. Recovering effectively from drawdowns

The 4 Varieties of Place Administration

The Arithmetic Behind Every Strategy

Mounted Heaps: The Linear Development Downside

With fastened tons, your development is solely linear:

Month 1: $10,000 → $10,500 (+5%) Month 2: $10,500 → $11,000 (+5%) Month 3: $11,000 → $11,500 (+5%) Downside: Identical $ threat on $10k and $20k account Consequence: Lowering relative returns

Good Administration: The Compound Impact

With clever place sizing:

Month 1: $10,000 → $10,700 (+7%)
Month 2: $10,700 → $11,449 (+7%)
Month 3: $11,449 → $12,250 (+7%)

Profit: Danger scales with account
Consequence: Compound development acceleration

After 12 months:

• Mounted tons: $16,000 (60% development)
• Good administration: $22,500 (125% development)

When Mounted Heaps Really Make Sense

The Proper Device for the Proper Job

I am not right here to bash fastened tons totally. They’ve their place:

✅ Use fastened tons when:

• Win price beneath 60%
• Testing new methods
• Throughout excessive volatility occasions
• Account below $1,000
• Psychological consolation wanted
• Prop agency analysis section

Actual instance: Throughout FOMC weeks, I swap all EAs to fastened tons. Why? Unpredictable volatility makes place scaling harmful.

When Good Administration Shines

The Excessive Win Fee Benefit

Good place administration excels when:

✅ Optimum situations:

• Win price above 75%
• Secure market situations
• Confirmed technique observe report
• Satisfactory account measurement ($5,000+)
• Skilled threat controls
• Clear pattern course

The 82% Win Fee Candy Spot

At 82% win price (like DoIt GBP Grasp), the maths turns into compelling:

Chance evaluation:

• 1 loss adopted by win: 82% probability
• 2 losses adopted by win: 67% probability
• 3 losses adopted by win: 55% probability
• 4+ losses: Solely 10% chance

This implies: Restoration positions have favorable odds, making managed scaling mathematically sound.

Actual Dealer Situations

Situation 1: The Grinder

Sarah’s Mounted Lot Journey:

• Technique: 68% win price
• Danger: 1% fastened
• 3-month end result: +12%
• Drawdown intervals: 15-20 days
• Psychology: Pissed off throughout recoveries

Situation 2: The Optimizer

Marcus’s Good Administration:

• Technique: 68% win price
• Danger: 1% base, 1.3% restoration
• 3-month end result: +19%
• Drawdown intervals: 5-8 days
• Psychology: Assured in restoration

Identical technique, 58% efficiency distinction.

The Volatility Adjustment Methodology

Past Easy Scaling

Skilled EAs use ATR (Common True Vary) for place sizing:

Dynamic Lot Dimension = (Account Danger % × Steadiness) / (ATR × Pip Worth)

Instance calculation:

• Account: $10,000
• Danger: 1% = $100
• ATR (14): 50 pips
• Pip worth: $1

Consequence:

• Excessive volatility (80 ATR): 0.125 tons
• Regular (50 ATR): 0.20 tons
• Low volatility (30 ATR): 0.33 tons

This robotically reduces publicity throughout harmful markets.

The Psychological Issue

Why Merchants Fail with Every Strategy

Mounted Lot Psychology:

• ✅ Feels secure and managed
• ❌ Irritating throughout restoration
• ❌ Leaves cash on the desk
• ❌ Creates “grinding” mentality

Good Administration Psychology:

• ✅ Quicker psychological restoration
• ✅ Confidence within the system
• ❌ Requires self-discipline
• ❌ Can set off concern if misunderstood

The Self-discipline Distinction

The actual separator is not the tactic – it is self-discipline:

Mounted tons require: Endurance throughout lengthy recoveries
Good administration requires: Belief within the arithmetic

Most merchants lack each, which is why they fail no matter methodology.

Implementation Information

Changing from Mounted to Good

Week 1-2: Training Part

• Perceive your present win price
• Calculate most acceptable drawdown
• Outline scaling parameters
• Paper commerce the adjustment

Week 3-4: Minimal Danger Testing

Begin with tiny scaling:
- Base: 0.01 tons
- Restoration: 0.011 tons (1.1x)
- Most: 0.012 tons (1.2x)

Week 5-8: Gradual Enhance

If profitable, enhance to: – Base: Regular measurement – Restoration: 1.2x – Most: 1.3x

Week 9+: Full Implementation

Goal parameters:
- Restoration 1: 1.3x
- Restoration 2: 1.5x
- Exhausting cease: 3 positions

Frequent Errors to Keep away from

The Deadly Errors

Mistake #1: Eradicating limits when shedding

• Mounted lot merchants: All of the sudden doubling measurement
• Good managers: Rising multipliers
• Consequence: Account destruction

Mistake #2: Ignoring market context

• Utilizing sensible scaling throughout information
• Mounted tons in good traits
• Consequence: Suboptimal efficiency

Mistake #3: Mixing approaches mid-session

• Switching strategies after losses
• Emotional choice making
• Consequence: Technique confusion

The Hybrid Strategy

Better of Each Worlds

Superior merchants usually mix strategies:

The Strategic Hybrid:

Monday-Thursday: Good place administration Friday: Mounted tons (weekend threat) Information days: Mounted tons (volatility) First week of month: Good administration Prop challenges: Mounted tons initially

This maximizes alternative whereas respecting threat.

Platform Implementation

MT4/MT5 Code Examples

Mounted Lot Implementation:

double LotSize = 0.10; // At all times the identical
OrderSend(Image(), OP_BUY, LotSize, ...);

Good Administration Implementation:

double BaseLot = 0.10; double LotSize = BaseLot; if(LastTradeLoss()) { LotSize = BaseLot * 1.3; // First restoration if(ConsecutiveLosses() >= 2) { LotSize = BaseLot * 1.5; // Second restoration } } // Security test if(LotSize > BaseLot * 1.5) { LotSize = BaseLot * 1.5; // Most cap }

The Price-Profit Evaluation

Mounted Heaps: The True Price

What you achieve:

• Simplicity
• Predictability
• Peace of thoughts
• Decrease max drawdown

What you sacrifice:

• 30-40% potential earnings
• Quicker restoration skill
• Compound development
• Market adaptation

Good Administration: The Actual Danger

What you achieve:

• Larger returns
• Quicker restoration
• Higher compounding
• Market flexibility

What you threat:

• 1-2% further drawdown
• Extra complexity
• Requires self-discipline
• Psychological stress

Making Your Resolution

The Resolution Framework

Ask your self these questions:

1. What’s my win price?
   • Above 75% → Think about sensible administration
   • Beneath 65% → Follow fastened tons
2. What’s my expertise degree?
   • 2+ years → Prepared for sensible administration
   • Newbie → Grasp fastened tons first
3. What’s my account measurement?
   • Above $5,000 → Good administration viable
   • Beneath $2,000 → Mounted tons safer
4. What’s my psychological profile?
   • Can deal with 6% drawdown → Good administration
   • Want absolute security → Mounted tons
5. What’s my purpose?
   • Most development → Good administration
   • Capital preservation → Mounted tons

The Integration Path

From Idea to Observe

Step 1: Audit Your Present Strategy

• Calculate precise win price
• Measure common restoration time
• Doc most drawdown
• Observe psychological stress factors

Step 2: Mannequin Each Approaches

• Backtest fastened tons
• Backtest sensible administration
• Evaluate restoration intervals
• Analyze revenue distinction

Step 3: Begin Conservative

• Start with minimal scaling
• Doc each commerce
• Monitor psychological response
• Modify progressively

Step 4: Optimize and Refine

• Discover your consolation zone
• Modify multipliers
• Set onerous limits
• Create guidelines doc

The Backside Line

Mounted tons aren’t “incorrect” – they’re incomplete.

For the precise technique (excessive win price) with the precise controls (onerous limits), sensible place administration is not dangerous – it is optimum.

The merchants making constant earnings perceive this distinction. They do not blindly observe “hold it easy” mantras. They match their place sizing to their edge.

The query is not “fastened or sensible?”

The query is: “What method matches my technique, psychology, and targets?”

Your Motion Plan

This Week:

1. Calculate your true win price (final 100 trades)
2. Mannequin each approaches together with your precise outcomes
3. Take a look at sensible administration with 0.01 tons
4. Doc the psychological distinction
5. Make an knowledgeable choice

Assets to Assist:

📊 Obtain the Actual-World EA Survival Take a look at – Use Level #6 to guage any EA’s place administration method.

Bear in mind: The very best place sizing methodology is the one you’ll be able to execute constantly with out emotional interference.

Select correctly, however extra importantly – select intentionally.

FAQ Part

Q: Is not sensible place administration simply martingale in disguise?
A: No. Martingale doubles with out limits. Good administration makes use of small multipliers (1.3x-1.5x) with strict caps and by no means exceeds predetermined threat limits.

Q: Can I exploit sensible administration in prop agency challenges?
A: Sure, however hold multipliers minimal (1.2x max) and guarantee whole publicity stays effectively inside every day drawdown limits. Some merchants desire fastened tons throughout analysis for security.

Q: What if I am psychologically uncomfortable with any scaling?
A: Then use fastened tons. No technique works if you cannot sleep at night time. The psychological fringe of consolation usually outweighs mathematical optimization.

Q: How do I do know if my EA makes use of sensible administration?
A: Examine the code for place measurement calculations. Search for variables like “LotMultiplier,” “RecoveryFactor,” or “MartingaleCoefficient.” Reputable EAs will clearly doc their method.

Q: Ought to I begin with fastened or sensible administration?
A: At all times begin with fastened tons. Grasp the fundamentals, perceive your technique’s conduct, then contemplate optimization. Good administration is a complicated approach, not a newbie shortcut.

Subsequent step: Consider your present place sizing method in opposition to your precise buying and selling outcomes. The info does not lie – however be sure you’re asking the precise questions.

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