Regime Multiplier

Understanding the Multiplier

The multiplier shows as a percentage adjustment:

• 100%: Normal conditions, use your standard position size
• >100% (e.g., 120%): Favorable conditions, can increase size slightly
• <100% (e.g., 75%): Risky conditions, reduce your position size
• 50% or lower: Very risky, use minimal size or avoid trading

Factors That Affect the Multiplier

The regime multiplier is calculated based on:

• Market State: Trending markets allow larger positions
• Volatility Level: Extreme volatility reduces the multiplier
• Risk Flag Count: More flags = lower multiplier
• Setup Grade: Higher grades allow larger positions
• Recent Performance: Consistent behavior improves multiplier

Applying the Multiplier

Here's how to use it in practice:

• Calculate your normal position size based on your rules
• Multiply by the regime percentage (e.g., $1000 × 75% = $750)
• This adjusted size helps manage risk dynamically
• Combine with leverage guidance for complete sizing

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