SPY day trading strategy: Sizing
Quick update on the SPY strategy we're building together. Today we took one clean trade using Gextron. We went short from 665 → 662, and Gextron did exactly what it’s built to do: - It gave us the entry level - It projected an achievable price target - It helped us move from OTM → ITM with precision Inside our day trading group, one of the biggest topics we've been breaking down is position sizing. Because this is what determines whether your strategy grows or blows up. We've considered 3 main approaches: 1. Dynamic %-Based Sizing You risk a fixed % of your account, like 1%. As your account grows, your size grows. As it shrinks, your size shrinks. 2. Fixed Dollar Sizing If you start with $1,000 per trade, you stick to that $1,000 no matter what. 3. Conviction-Based Sizing High conviction → risk more Low conviction → risk less For the sake of consistency, we're sticking with fixed position sizing. Our paper account is $100,000. So we're trading $1,000 per trade. Wether the account hits $150k or dips to $90k we stay at $1,000 per trade. Why? - It makes our results predictable - It reduces P&L volatility - It protects the account during losing streaks - It gives us more control over the risk side of the strategy Right now we're sitting at 83% win rate over 6 trades – but we're excited to see our losing streak come. That's where we'll see the real durability of your strategy. We want controlled growth, small drawdowns, and avoiding high CVaR situations. What position sizing method works best for you? Drop your thoughts below!