The idea
The same position size carries very different risk in a calm market and in a stressed one. Sizing to volatility keeps the amount you could lose roughly the same whatever the market is doing. This guide explains the readings; the rules you apply are your own.
Step 1: read the market-wide regime
On State Intelligence, the Volatility Regime card reads the market as calm, normal or stressed. A stressed market means wider swings on almost every asset.
Step 2: read the asset's volatility
On the asset's Metrics page, Volatility Compression compares ATR with its moving average. Compression means swings are shrinking and a larger move may follow; expansion means swings are already wide.
Step 3: check risk and stability
Risk & Stability summarises how stable the current structure is. Risk & Invalidation Metrics shows each risk measure over time against its limit, with the current value.
Step 4: tie size to the invalidation
The distance from your entry to the Invalidation Zone is how far price can move before the idea is wrong. A wider distance in a stressed market means a smaller position for the same accepted loss; a tighter distance in a calm market allows more.
Common mistakes
Keeping the same size after the Volatility Regime turns stressed.
Moving the invalidation further away to make a larger position fit.
Treating Volatility Coil as calm: compression can come before expansion.