Sizing in NQ and MNQ by volatility regime

The NQ course teaches sizing from the stop: dollar risk divided by the stop distance in dollars. This course adds the variable module 4 introduced: the stop itself changes with volatility, so size changes every day, and the MNQ is the tool that lets you follow it finely.

The calculation chain

1. Risk per trade is set in dollars, once and for all for the month: 0.5 to 1% of the account on a personal account; on a funded account, lesson 3 of this module says more.
2. The stop distance comes from the card, recalibrated on the day's VXN: about 6 to 8% of the expected daily move.
3. Size is the risk divided by the stop distance times the point value: $20 on the NQ, $2 on the MNQ.
4. Rounding is downward, in MNQ as long as the result is not a multiple of 10.