When Size Should Shrink Even If the Setup Looks Clean

Position Sizing Lab spends an afternoon on reduction rules. A textbook pullback sitting on a weekly level and a session open can still deserve half size if stop distance is already wide, or if two other open risks share the same direction.

Students resist reduction because the chart “looks good.” We treat that resistance as the lesson. Write the reduction triggers in advance: overlapping zones, thin liquidity hours, or a prior loss the same day. The cleanest setups are often the ones that tempt oversized tickets. Training is less about finding more patterns and more about keeping size honest when patterns look perfect.

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