Risk management rules
1. Maximum risk is 120 points.
2. Risk 2 percent of your account balance per trade.
3. After 3 consecutive losses stop trading for the day.
4. Daily maximum drawdown is 5 percent of the starting balance of the day.
5. After 3 days of consecutive losses stop trading and take a 2-day break.
6. Overall drawdown is 20 percent of the initial account balance. It’s a fixed limit that does not change with profit and losses.
7. After 6 consecutive losses reduce the risk per trade to 1 percent and return to 2 percent after 3 consecutive winning trades.
8. After another 3 consecutive losses stop trading for 2 days to review your trades. Return to trading with a risk of 1 percent of the account balance per trade.
9. After 3 consecutive winning trades increase your risk to 2 percent.
(Mon 3 consecutive losses, Tue 3 consecutive losses again, Wed cut risk per trade to 1 percent, after 3 consecutive losses stop trading for 2 days resume on Monday).
1. Maximum risk is 120 points.
2. Risk 2 percent of your account balance per trade.
3. After 3 consecutive losses stop trading for the day.
4. Daily maximum drawdown is 5 percent of the starting balance of the day.
5. After 3 days of consecutive losses stop trading and take a 2-day break.
6. Overall drawdown is 20 percent of the initial account balance. It’s a fixed limit that does not change with profit and losses.
7. After 6 consecutive losses reduce the risk per trade to 1 percent and return to 2 percent after 3 consecutive winning trades.
8. After another 3 consecutive losses stop trading for 2 days to review your trades. Return to trading with a risk of 1 percent of the account balance per trade.
9. After 3 consecutive winning trades increase your risk to 2 percent.
(Mon 3 consecutive losses, Tue 3 consecutive losses again, Wed cut risk per trade to 1 percent, after 3 consecutive losses stop trading for 2 days resume on Monday).