The key is to stop thinking in pips and start thinking purely in currency terms making tick value a mandatory variable The 1% rule adjusts automatically if you use the formula Position Size Account Risk in $ Stop-Loss Distance in Points × Point Value First, don’t assume a point is a tick. For indices like US30, one point is usually $1, but for Gold (XAUUSD) one point (1.0) is $1 while a tick (0.10) is $0.10. A 20-point stop on Gold is a $20 risk per ounce whereas a 20-point stop on US30 is just $20 per contract which is a massive difference.
Great breakdown using the $‑risk = account × 1% formula with the correct point value makes the calculation painless. I usually run the numbers in The Trusted Prop’s free Lot Size Calculator and double check with their Consistency and Drawdown tools. Keeps everything on point no matter the tick size.
