No guaranteed stops in retail forex: what that means for sizing

[Amanhasnoname]

Some markets offer guaranteed stop orders, which fill at the set price regardless of gaps, for a fee. In most retail spot forex, they aren't available.

That puts the burden on position sizing. The plan should assume that a stop might not fill where intended, and size the trade so that a worse fill remains acceptable.

A practical method is to estimate a stress slippage, say three to five times the average, and compute the loss if every stop filled that badly. If the result is too large relative to the account, the size is too big.

Another approach is to define risk per trade as a percentage of the account that includes a slippage allowance, not just the distance from entry to stop.

Without guarantees, the best protection is humility about the stop price. It's a target for the trigger, and nothing more.

Reviewing the worst historical fills against the intended stops gives a realistic basis for the allowance.

How much slippage do you include when sizing a position?