Position Sizing

Position Sizing Formula

VECTRA calculates position size based on the defined risk per trade:

Position sizing formulas

Risk Amount = Account Equity × Risk Percentage (default 1%)
SL Distance = |Entry Price - Stop Loss Price|
Position Size = Risk Amount ÷ SL Distance
Leverage = Position Size ÷ Available Margin

All sizes are validated against exchange minimums and rounded to the exchange's precision requirements (Hyperliquid uses 5 significant figures for prices).

Position sizes are adjusted to meet exchange minimums and rounded to the exchange's precision rules.

Kelly Criterion (Advanced)

When sufficient trade history is available (50+ trades), the Order Flow MTF strategy calculates the optimal Kelly fraction:

Kelly formula

Kelly % = Win Rate - (Loss Rate / Average Win:Loss Ratio)

VECTRA uses Half-Kelly for safety — the optimal fraction divided by 2. This provides ~75% of the theoretical growth rate with significantly less variance.

Regime-Based Adjustment

Position sizing is not static. It adjusts based on market conditions:

• Strong Trend: Standard size (high confidence in direction)

• Ranging: Slightly reduced (higher reversal risk)

• Volatile: Reduced by 15–30% (wider stops eat more risk budget)

• Transitioning: Reduced by 20–40% (uncertain conditions)

Leverage Management

• Maximum leverage is configurable (default cap: 50×)

• Actual leverage is calculated from position size and available margin

• The system never exceeds the configured maximum regardless of signal confidence

• For small accounts ($100–$500), special handling ensures minimum order sizes are met

Minimum Account Optimization

VECTRA is designed to work with accounts as small as $100:

• Position sizes are calculated to meet exchange minimums

• Risk per trade scales appropriately (1% of $100 = $1 risk)

• Maximum position per trade capped at 10% of account to prevent over-exposure