Risk Management

Risk ManagementLeçon 5 sur 75 min de lecture

How often

One percent per trade means nothing without a limit on trades, so the cap is set for the whole day, and a day with no setup is a correct day.

The one percent rule has a hole in it, and the hole is the second number.

The loophole

One percent a trade sounds safe. Take twenty trades in a day and you have risked twenty percent of the account.

The rule did not fail. It was never a rule about the day, only about a single trade.

A per trade limit with no limit on trades is not a limit.

Cap the day

The fix is to set the ceiling for the day, then fit the trades inside it.

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