Fixed Lot Size vs. Dynamic Lot Sizing – Which One Do You Prefer?

1️⃣ Fixed Lot Size

💡 Definition: Every trade uses the same lot size, regardless of account balance or risk conditions.

✅ Pros:

✔️ Simple & easy to control 📏

✔️ Consistent trade sizes = predictable risk per trade 🔍

✔️ Good for small accounts where risk is manually controlled

❌ Cons:

✖️ Doesn’t adapt to changing account size 📉📈

✖️ Can be too risky during drawdowns or too conservative in profitable periods

💡 Example:

If you set 0.1 lot per trade, every trade will always be 0.1 lot, no matter how much your account balance changes.

2️⃣ Dynamic Lot Sizing (Risk-Based)

💡 Definition: Lot size adjusts automatically based on account balance, percentage risk, or equity.

✅ Pros:

✔️ Scales with account growth 📈

✔️ Adapts to changing market conditions 🔄

✔️ Helps manage risk dynamically 💰

❌ Cons:

✖️ Requires proper calculation (e.g., risk % per trade) ⚠️

✖️ Higher complexity compared to fixed lots

💡 Example:

If you set 1% risk per trade, lot size will increase when your balance grows and decrease when your balance drops, keeping risk consistent.

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