Position Sizing

Position sizing and broader account risk management are explicitly outside the scope of Trade the Mechanics. The framework tells you where the mechanical wrong point is and therefore where the structure says the stop belongs. It does not prescribe how much of your account to risk on that trade.

The relationship between the two still matters. If the structural wrong point produces a wide stop, moving the stop closer simply to reduce dollar risk changes the trade and may place the exit inside otherwise valid structure. The honest risk-management lever is position size: whatever external risk method you use should adjust exposure rather than rewriting the chart's wrong point to fit a preferred lot size.

Keep the disciplines separate. Market mechanics determines whether the thesis is valid and where it becomes invalid. Account management determines how much capital you are willing to place behind that thesis. Both matter, but this book deliberately teaches the first and leaves the second to a separate risk-management discipline.