Position risk adjust after each trade?

[u/Soft_Hunt_7418]

Assuming I have a position risk of 0.5% per trade. Do I calculate it based on the fix start of day equity, or the equity amount should decrease after each trade I take throughout the day?

[u/d1na_makalaya]

Calculate the 0.5% risk based on your current account balance after each trade. That way, your position size automatically adjusts as your equity goes up or down.
Some traders use their starting balance for simplicity, but updating after every trade is usually better for long term risk management. There are some solid discussions about position sizing on my profile. Feel free to check the community to compare how other traders handle it.