Position sizing and exits for momentum traders

the risk unit

Decide one number: how much of your trading account you are willing to lose on a single trade. For momentum tokens, 1% is sane and 2% is aggressive. That number, not your conviction, sets the position size.

sizing when the stop can fail

On thin liquidity a stop-loss is a hope, not a guarantee. Size as if the token could lose 80% before you can sell. Position = risk unit ÷ 0.8. With a $10,000 account and 1% risk, that is a $125 position. It feels small. It is the reason you survive.

exits that pay

1. First partial at 2x: sell a third. The remaining position is now risk-free in account terms.
2. Trail below higher lows on the entry timeframe. Each new low that holds moves the stop up.
3. Milestones (5x, 10x) bring new buyers and sellers at once; sell into that strength rather than hoping for the next one.
4. Volume rule: if 6-hour volume falls below liquidity while price is flat or rising, distribution has started. Exit the rest.

what not to do

• Don't move the stop down. Ever.
• Don't add to a loser. Trending tokens get replaced, not rescued.
• Don't hold for the full 100x story. The tracker's leaderboard shows how rare it is; the median trending token gives back most of its gain within days.

the maths that makes it work

With 1% risk per trade, ten straight losses cost 10% of the account. One 5x winner sized the same way returns 4% of the account before partials. You don't need to be right often; you need to be sized so being wrong is boring.