ACCOUNT RISK MANAGEMENT
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ACCOUNT RISK MANAGEMENT
Above is an important illustration that will outline the difference between risking 2% of your capital per trade compared to risking 6%.
If you happened to go through a 10 trade losing streak, you would have gone from starting with £20,000 to having only £11,459 left if you risked 6% on each trade.
After 10 losing trades you would have lost over 40% of your account.
If you were more conservative and risked only 2% of your account per trade, you would still had £16,674 which is only a 17% loss of your total capital.
- 10 trades at 6% per trade would mean a 75% increase is required to get back to breakeven.
- 10 trades at 2% per trade would mean a 20% increase is required to get back to breakeven.
The point of this illustration is that you want to setup your risk management rules so that when you do have a drawdown period, you will still have enough capital to stay in the game.
Trade Safe.
Above is an important illustration that will outline the difference between risking 2% of your capital per trade compared to risking 6%.
If you happened to go through a 10 trade losing streak, you would have gone from starting with £20,000 to having only £11,459 left if you risked 6% on each trade.
After 10 losing trades you would have lost over 40% of your account.
If you were more conservative and risked only 2% of your account per trade, you would still had £16,674 which is only a 17% loss of your total capital.
- 10 trades at 6% per trade would mean a 75% increase is required to get back to breakeven.
- 10 trades at 2% per trade would mean a 20% increase is required to get back to breakeven.
The point of this illustration is that you want to setup your risk management rules so that when you do have a drawdown period, you will still have enough capital to stay in the game.
Trade Safe.
Not
I personally trade 1% per position, however this is a great illustration of basic risk management that should be implement prior to any live account trading.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.