Analytics

Using Position Sizing Analysis to Improve Discipline

Guide to tracking planned versus actual position sizes and understanding the financial impact of sizing deviations.

Position sizing analysis compares your planned size for each trade against what you actually executed. The deviation between the two reveals important behavioural patterns.

Accessing the Dashboard

Navigate to Analytics then Position Sizing. The dashboard requires that you log both planned and actual position sizes (the planned size can be auto-calculated from your risk rules and stop distance).

The Deviation Chart

The primary chart shows each trade as a bar:

Bar height: Percentage deviation from planned size

Green bars: Trades where actual size matched the plan (within a configurable tolerance)

Amber bars: Minor deviations (under 20%)

Red bars: Significant deviations (over 20%)

The Deviation Distribution

A histogram showing how your sizing deviations distribute:

Centred at zero: Disciplined sizing

Skewed right: Systematic oversizing

Skewed left: Systematic undersizing

Wide spread: Inconsistent sizing

Impact Analysis

The Impact tab shows three figures:

Oversizing Cost

The total extra P&L lost on trades where you sized larger than planned and the trade lost. This is money you would have saved with disciplined sizing.

Undersizing Cost

The total P&L you missed on trades where you sized smaller than planned and the trade won. This is opportunity cost from fear.

Net Impact

The combined effect. For most traders, this is negative—sizing indiscipline is a net cost.

Context Breakdowns

After Wins vs After Losses

Do you size up after winning (confidence effect) or after losing (revenge effect)? The chart shows your average deviation in each context.

By Confidence Level

If your high-confidence trades show +30% oversizing, your confidence is leaking into your position sizing beyond what the plan allows.

By Time of Day

Do you maintain sizing discipline throughout the session or does it deteriorate? Many traders oversize in the afternoon as fatigue reduces discipline.

Setting Up Alerts

In Settings then Risk Alerts:

Alert when position size exceeds plan by more than X%

Alert when cumulative daily risk exceeds your threshold

Alert when sizing deviation increases over a rolling 10-trade window

Improving Sizing Discipline

1Display the calculated size prominently before each trade entry

2Use broker position size calculators or templates where available

3Log your intended size in pre-trade notes before execution

4Review the deviation chart weekly and investigate any red bars

For the complete analysis of sizing behaviour, read our blog post on [Position Sizing Discipline: Planned vs Actual Analysis](/blog/position-sizing-discipline-analysis).