Method
The Cloud Transf sequence from chart structure to a finished position size.
Technical analysis training at Cloud Transf always ends in arithmetic. Pattern recognition without a risk figure is unfinished work. The method below is what every intensive, clinic, and mentoring block follows.
Mark invalidation
Identify where the trade idea is wrong on the chart — typically a swing high or low that breaks structure. Round-number stops are challenged until they map to that structure.
Measure distance
Convert the gap from entry to invalidation into points, pips, or pounds per share. That distance is the only stop width we accept for sizing.
Apply the risk budget
Choose a fixed fraction of equity (often 0.5%–1% per idea) or an ATR-scaled fraction. Multiply account risk allowance by that fraction to get pounds at risk.
Solve for size
Divide pounds at risk by pounds risked per unit. Round down, check open correlated exposure, then write the size on the worksheet before the ticket is filled.
Why this order
Sizing first and finding a stop later invites wishful placement. We reverse the habit: the market’s structure sets the stop; your capital rules set the size. Indicators and narratives sit outside this sequence — they may justify taking the trade, never how large it should be.
Where to practise it
The Risk & Position Sizing Intensive walks the full sequence over two evenings. Chart clinics apply it to live ideas. If you want a quiet audit of your current book, mentoring is the shorter path.