Why is the weekend cut larger than the overnight cut?

A weekend includes two or more consecutive closed-market days instead of one overnight session, which is more time for news or other events to move a stock with no opportunity to exit until the market reopens.

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What should my rule be for cutting position size before holding a trade overnight or over a weekend?

Q: What should my rule be for cutting position size before holding a trade overnight or over a weekend?

Enter your normal position size and pick a comfort level. The generator produces a rule card with your reduced overnight size, and a further-reduced weekend size if you indicate you sometimes hold positions over a weekend.

Every habit in this library exists because I paid tuition for the mistake first.

Jason Parker, Founder of Trading Habits

Enter Your Normal Size and Comfort Level

Your Result

Fill in the fields on the left and click Generate My Rule to get a personal rule card.

How this is calculated

Your overnight size equals your normal size multiplied by (1 minus your comfort-level reduction percentage).
If you hold over weekends, the weekend cut adds 15 additional percentage points to your overnight cut, capped at 90%, since a weekend carries two or more closed-market days of news risk instead of one overnight session.
This is a personal comfort-based rule, not a formula tied to any specific stock's historical move data. Pair it with a stress test, like the overnight move-through-stop calculator linked below, to check whether a specific move size would still be a problem even at your reduced size.
A generated rule only helps if you actually follow it. Consider saving this card somewhere you will see it before your next overnight hold.

Risk & liability disclaimer: This tool generates a personal sizing rule based on the comfort level and inputs you choose. It does not analyze any specific stock's actual historical overnight or weekend moves. It is not financial advice. Trading involves risk of loss. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider.

What should my rule be for cutting position size before holding a trade overnight or over a weekend?

Enter Your Normal Size and Comfort Level

Your Result

How this is calculated

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