Risk management

What is your maximum percentage risk per trade?

Are you asking for it as a percentage, or what?

And if you do mean a percentage, a percentage of what, precisely?

A percentage of “the funds in the account” doesn’t tell you anything helpful at all, does it? Nobody keeps all their trading funds in the account, do they? (Nobody successful, anyway!).

I’m not trying to criticize! I’m just suggesting that it’s not clear what you want to know (or why) and that if you ask a much more specific, clearer question it will be much easier for people to help you. :wink:

(I’ve moved your thread to the “Risk Management” folder, as it may be seen there by more people interested in the subject.)

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1/400th of my trading capital, or 0.25% - not related at all to “funds currently in the account”, or to which account I use at the time.

People normally ask this question in forums as a “% of the account”, but it’s surely both more interesting and more helpful (if it’s helpful at all?) to discuss it in terms of a “% of trading capital in general”?

However you look at it, though, it doesn’t mean much without “R” and win-rate figures, too, does it?

A momentum scalper with an 80% win-rate and a low R will give you a totally different figure from someone trying to catch trend reversals, who might have a 20% win-rate and a huge R. But if you don’t know exactly what they’re doing, how’s it going to help you?

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To manage my risk, usually prefer to use the smallest lot size, in this case is 0.01 lot, and set stop loss based on near support and resistance on a small timeframe. My risk per trade is relatively low, less than 2%.

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Makes sense if you’re just starting out or trading micro accounts, but fixed lot size without adjusting for account size or volatility can limit growth or risk consistency. Have you tried position sizing based on % risk per trade instead? It might give you more flexibility as your account scales.

I use 0.5% of what’s in my account as the maximum risk per trade.

(But I have a high win rate, even though some of the wins are pretty small!).

Once I’ve withdrawn any money from my account to my bank account, I no longer consider it to be trading capital, so I do actually calculate it from what’s available in my account.

I hope eventually to cut that 0.5% down to 0.33%, but I have a way to go before I can do that.

In this case, I prefer to keep the position size low, unless a profit target of say 100% is achieved, which might change my mind about scaling the position size.