The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
Loading connects to YouTube and may transmit device data or use storage. Privacy details. Alternatively, watch on YouTube ↗.
What is actually happening?
R normalizes a result by the initial declared risk. A weighted partial exit combines the fraction of the original size with each exit’s return. Costs and actual fills matter; reducing size does not justify changing the original denominator.
Guided example · Alternative exit paths · original-risk denominator
Weight every partial exit
Use the original position and original risk as the denominator throughout.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
Choose a fixed exit policy before entry. For comparison, hold the entry, stop, sample and friction assumptions constant.
Example partial policy: close half the position at +1R and the rest at +2R, without inventing a different policy once price starts moving.
If the first target never trades under your fill rules, do not record a partial fill. If the protective stop executes, record the actual result and residual size.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
Additional exits can add transaction costs and execution complexity. Moving a stop to entry does not guarantee a zero-loss fill.
How the idea can fail.
A partial policy may feel comfortable but truncate the trades that provided most of a sample’s gains. A fixed policy can suffer longer losing sequences.
Practical habit
Record fractions, prices and costs for every fill. Compare net R across all eligible signals, not just attractive examples.
Go one level deeper
Report distribution, drawdown, trade count and the sensitivity of results to worse fills. Do not choose a policy from a few memorable trades.
Check your understanding
Half at +1R and half at −1R equals what before costs?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use