Volatility-based position sizing

Equal risk, not equal dollars

Professional - Gold & Platinum

In this lesson

Size positions so each one carries the same risk, using volatility (ATR) and volatility targets.

Key takeaways

Equal dollars ≠ equal risk; volatile assets need smaller positions.
Position size = money at risk ÷ stop distance (e.g. 2 × ATR).
Volatility targeting: weight ≈ target volatility ÷ asset volatility.
Re-size as volatility changes — risk, not position value, stays constant.

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Educational information only - not financial advice.

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