Risk per trade percentage

Good day traders!
What percentage of capital do you risk per trade? I was using 1% but think I should lower it to 0.5% and increase volume.
Any thoughts?

I average 1% but go anywhere between 0.5% for a strategy I am not completely sure about up to 2% for something I’m more familiar with.

I get the % risk from the strategy, not the specific trade situation. And definitely not from what I have recently made or lost…

What does your strategy tell you?

There’s no way for us to know if it’s a good idea because we don’t know what your hit rate is.

Risking less sounds like good risk management. I did the same thing because I was losing money too fast.

Are you losing too much money at the moment?

I am simulating prop firm trading. I have a drawdown which would exceed the limits. So in order to continue I would need to lose less but also make less as well but stay in the game longer.

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I think you have the right idea. Problem solved, right?

It sounds logical to me!

Good luck on your challenge!

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Risk exposure depends on what trades you are making or want to trade. I would keep to a managed risk percentage by moving lot size exposure up or down,. This enables a larger or smaller S/L depending on where you intend to place your T/P - which is key to making a positive probability of a winning trade.

In other words I choose where I would place my T/P, and then select what risk size I need to offer enough breathing space for the S/L.

The risk percentage in each trade that I apply is around 2% of capital. Although in reality changes often occur due to market conditions. In this case, we must be disciplined and strict in terms of risk management. Remembering that market movements will be very different each period.

Percentages and compounding are the route to financial success, not big numbers.

As ever, if you trade with a 1% risk only once a day, and your r:r is only 1:1.5, and you only win on 11 days out of every 20, you will double your money in less than a year. Every year.


I am between 0.5% - 2% but that said i mostly trade with 1 %.

If you feel unsure then lower the %, do not go in a trade if you are unsure, and you are not in any rush here, remember that.


you should have something fixed that you are not allowed to change it
simply put it 1% or even 0.5% and do not change it

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That is the plan. I maybe worded it incorrectly. If I begin a challenge it would be with a fixed 0.5% risk per trade.

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