Position Sizing on Padre Terminal: A Practical Framework
Position sizing decided in the moment tends to track excitement rather than risk — bigger on the trade that feels obvious, smaller on the one you're unsure about, regardless of which one actually deserves more size. A simple framework fixes this before it happens.
Decide the unit size first
Pick a standard position size for your account — a dollar amount or a percentage of your total trading capital — and use that as your default before you've looked at a single token. This is the number you deviate from deliberately, not the number you're inventing fresh each time.
A simple three-tier structure
Your default unit, used for the majority of trades — tokens that clear your own basic safety checks but aren't otherwise remarkable.
A fraction of standard, for anything on the more speculative end — earlier-stage tokens, thinner liquidity, or setups you're less confident about but still want exposure to.
A multiple of standard, reserved for setups that clear more of your checks than usual — used deliberately and rarely, not as the default for anything that looks exciting.
Sizing down instead of skipping
A token that's interesting but doesn't fully clear your checks doesn't have to be an all-or-nothing decision. Sizing down rather than skipping entirely lets you stay engaged with a wider set of opportunities without concentrating risk in things you're less sure about.
What breaks this framework
The most common failure is resizing mid-session based on how the day is going — sizing up to "catch up" after losses, or sizing up because a winning streak feels like skill. Both responses move size in the wrong direction relative to actual risk. The framework only works if the tiers stay tied to the setup, not to your current mood about the session.
Set your standard size
Decide your unit size before your next trade, and connect your wallet when you're ready.
Open Padre Terminal →