Size's more important than entry points. What you need to know to size up: - MLS : Max loosing Streak Knowing that the future ain't shiny, You're allowed to multiply it by x>=2 - MP : Maximum pain How much are you willing to lose ? 0,25 % of your capital ? 0,5% of your capital ? If 0,75% then MP = 1-(1*0,75)=0,25 What you will know: - z*100 : How much you can bet (%) According to your worst case (MLS) and your MP threshold Solve for z (1-z)^{MLS}=MP Exemple: -MLS = 20*3 = 60 -MP = 1-(1*0,5) = 0,5 (1-z)^{60}=0,5 z = 0,011*100 = 1,1 So I can bet 1,1% of my capital without going ever broke ! If my implied MLS is strictly inferior to my future realized MLS. Otherwise there is the Kelly Criterion !