Position Sizing Against the Daily Floor
Devin Park
Market Structure
The daily loss floor is a hard stop on the account, not a soft target. Size as if you might be wrong twice in a row before the day is over.
A Simple Budget
Take a $50,000 account with a 5% daily limit. That is $2,500 of room from the 00:00 UTC balance.
Fees, funding, and slippage eat part of that budget, so treat the table as a ceiling, not a promise.
Leverage Is Not Risk
Raising leverage does not change how much you lose at a given stop distance if notional stays the same. It only changes how much margin the position ties up. Risk lives in size and stop distance; leverage is a capital-efficiency dial.
If a full stop on your planned size would consume more than a third of the day's remaining room, the size is too large for that account.
One Practical Check
Before you send the order, ask what the account equity would be if this trade stops out and the next one does too. If that number sits on or below the floor, cut size before you click.