This is your complete risk management reference — the rules that protect your capital and keep you in the game. Print it. Memorize it. Follow it on every trade. These rules are not optional. They are the difference between surviving and blowing up.
Position Sizing Rules
- ☐ Risk maximum 1-2% of account per trade
- ☐ Position size = (Account × Risk%) ÷ (Entry – Stop)
- ☐ Adjust size for ATR-based volatility
- ☐ Never go “all in” on any single trade
- ☐ Maximum 3-5 open positions at once
- ☐ Total open risk ≤ 6-8% of account
Stop-Loss Rules
- ☐ ALWAYS set stop-loss BEFORE entering
- ☐ Place stop at logical level (structure, ATR, pattern boundary)
- ☐ Never move stop further from entry
- ☐ Move stop to breakeven after Target 1 hit
- ☐ Use trailing stops on remaining position
Take-Profit Rules
- ☐ R:R minimum 2:1 (preferably 3:1)
- ☐ Scale out: 50% at Target 1, trail the rest
- ☐ Targets based on structure, Fibonacci, or measured moves
- ☐ Don’t get greedy — take profits when available
Drawdown Limits
- ☐ Daily loss limit: 3-5% → stop trading for the day
- ☐ Weekly loss limit: 5-8% → reduce size by 50%
- ☐ Monthly loss limit: 15-20% → stop trading, review strategy
Behavioral Rules
- ☐ No revenge trading after losses
- ☐ No FOMO entries into pumps
- ☐ No trading when emotional (angry, excited, stressed, tired)
- ☐ Walk away after 3 consecutive losses
- ☐ No increasing size after wins (stay consistent)
- ☐ No trading without checking the higher timeframe trend
Account Protection Rules
- ☐ Use only regulated exchanges with 2FA enabled
- ☐ Never share API keys with withdrawal permissions
- ☐ Keep trading capital separate from savings
- ☐ Withdraw profits regularly to a bank account
- ☐ Never trade with money you can’t afford to lose
The Ultimate Rule
Capital preservation comes first. Always. You can recover from missing opportunities. You can’t recover from a blown account. Protect your capital above all else, and the profits will come. Trade safely on Mal.io.
Leave a Reply