Fixed amount
Definition
Fixed amount (flat) is a money-management method in which every trade is opened for the same amount regardless of results or changes in the deposit. It is the most predictable way to count risk: a $1,000 deposit at $20 per trade is guaranteed to survive 50 straight losses — but with a win rate around 50% and a payout below 100% the method statistically drifts the account into a small minus.
How it works
One amount for every trade — and no recalculations. The safety margin takes a single division: the deposit over the trade amount. $1,000 at $20 per trade means 50 straight losses before there is nothing left to trade with. No progression, drawdown, or lucky stretch affects the size — which is why statistics read cleanest under flat: every win and every loss costs the same, and the quality of a strategy shows without adjusting for trade size.
The math of flat
At an 80% payout a win brings $16 on a $20 trade, a loss takes $20. The average result over 100 trades:
| Win rate | Result over 100 trades at $20 |
|---|---|
| 50% | −$200 |
| 55.6% | $0 |
| 60% | +$160 |
An even 50/50 means minus 10% of turnover — not "around zero," as intuition suggests. Flat hides nothing: the 55.6% break-even threshold at an 80% payout is visible head-on, and beating that threshold is the method's only source of profit.
How it differs from fixed percent
Fixed percent recomputes the amount from the current balance: in a drawdown trades shrink, during growth the profit stays in the deposit and enlarges the following amounts. Flat does neither — it does not brake through a bad stretch and does not accelerate through a good one. In exchange it offers what the percent cannot: the risk in money is known in advance for any number of trades ahead, and the discipline leaves no room for emotional decisions — the size of the next trade is not up for debate.
Frequently asked questions
Is this flat the same as a flat market?
No, they are homonyms. A market flat is a chart state where price moves in a narrow range with no clear direction. Flat in money management is trading the same amount on every trade. All they share is the idea of "even": an even price in one case, an even amount in the other.
How many straight losses will the deposit survive?
Exactly the deposit divided by the trade amount: $1,000 at $20 per trade — 50 losses; at $10 — 100. That is the method's main virtue: the safety margin takes one division to compute and depends on no scenarios.
Why is flat losing money at a 50% win rate?
Because the payout is below 100%: a loss takes the whole trade amount while a win brings only part of it. At an 80% payout a winning $20 trade earns $16, a losing one takes $20. With equal numbers of wins and losses the account slowly shrinks — breaking even needs a 55.6% win rate.