Average % capital risked

The formula

Average, per trade, of the risk taken (entry → stop distance × size) relative to capital.

How to read it

The share of your account put on the line per trade. Above 1-2%, a losing streak hurts badly.

Do not look at the average, look at the spread. A trader risking 1% everywhere and one alternating 0.2% and 3% have the same average and two different jobs. The second has no sizing rule, they have a feeling, and that feeling rises exactly when it should not.

The classic mistake

Raising size after a run of winners. That is when the feeling of mastery is strongest and when the streak is statistically closest to ending. Sizing is decided in the plan, cold, not during.