I know what fixed percent risk position sizing is... but what im unclear about is do you always fix it against your "ORIGINAL" capital base? or do you change it as your capital base/equity changes.
Example. Lets say i start with $20k, and i want to risk 2%, thats $400. after 2 months my capital has dropped to $15k, so in this instance do i still go with 2% of $20k or $15k??
In the event that my equity goes up i would most probably pyramid my profit with the same fixed 2% risk, but when it goes down.... what should i do? that is my main concern.