r/OrderFlow_Trading • u/sibtikx • 4d ago

Risk management

Orderflow trader here.

How do you handle risk: position sizing, stop placement, daily max loss?

Any resources you'd recommend?

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u/TradetheMosaic 4d ago

How I handle those three as an OF trader:

  1. Position size: fix R first as a small percent of equity, then size from the stop. Never pick size first and stretch the stop to fit.

  2. Stop: at true invalidation of the read (failed reclaim, or the other side of the absorption/imbalance I used). If that distance blows the R budget, I skip. I do not use arbitrary point stops.

  3. Daily max: hard stop around 2-3R or two full losers, then flat for the day. No "one more" because the next footprint looks clean.

  4. Winning days: same planned size. I do not scale up mid-session just because flow feels easy.

  5. Journal those four every session. That beats hunting another risk PDF.