The 1% rule
The most important rule: never risk more than 1% to 2% of your balance on a single trade. With $1,000, the most you lose on one trade is $10 to $20.
Why? Even the best systems go through losing streaks. At 1% risk, 10 losses in a row take about 10% off your account and you can carry on. At 10% risk, the same streak wipes out most of it.
- Small risk keeps you calm.
- It helps you stick to the plan instead of chasing losses.
- It lets results depend on the system over time, not on one trade.
The lot calculator in the app sizes the trade automatically from your balance and risk percentage.