Risk Management

Risk Management is the third most important element of trading in our opinion (the initial two are Psychological State and Strategy (Fundamental & Technical) Application).

We wanted to provide some information about how we manage risk and discipline in trading. Before we do that, we want to make it clear that every trader is different; every trader has different goals, targets and monetary requirements. This may not be suitable for your style and you may want to adapt the approach that we use – that’s perfectly fine.

In any case, let’s start with percentage risk per trade that we take and strictly stick by:

  • SHORT TERM TRADES*: 0.5% per trade maximum (50 tick stop loss maximum)
  • END OF DAY/ SWING TRADES: 1.5% per trade maximum (150 tick stop loss maximum)

Hopefully this gives you an outline of how we manage our risk and approach to the markets. If you have any questions, use the form below and we’ll get back to you.

*SHORT TERM TRADES: These can be anywhere from intraday up to 5 days. We will only trade SHORT TERM if there is a decent amount of market volatility. If volatility is low, we will lengthen our time horizon. Trading SHORT TERM/INTRADAY in a low volatility environment is a fast track way to deplete your account.

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Risk Warning.