Yes, I will fit a worst case scenario to my trades. Usually options cap my max risk somewhere and the position size limiter comes from somewhere else before my capital at risk stops me. Sometimes a scenario is lucrative enough where I will trade uncapped risk, like ratio spreads in options. Then it’s my best guess of how far something can go during my trade horizon, but I try to overestimate so I don’t have to size down a trade from a PnL signal. Is your market beta ceiling for leverage used as a proxy for stress test risk over a particular time jump? I.e. you wouldn’t want to find yourself losing much more than the general market does? Or you just prefer a less sporadic equity curve? Just curious what stops you at beta = 1 because a higher sharpe could sustain more leverage and still be winning if you aren’t hitting stress test or capital constraints. Optimizing for geometric return given a set of projections always spits out really high position sizing figures for good trades so I am always left asking myself how much to back that down by. I go at it from a few different angles like I mentioned but still not 100% developed in my process for that. Thanks for the feedback.