How much do you risk per trade?

Depending on your trading style/system, you could just completely hedge or half hedge during news events. Bear in mind that unless it's something major or catastrophic, normally the long term trend stays the same. You really should only be worried if you're doing shorter trades or scalping.

You could also look into breakout trading as an option during these events. I don't advise it, but some people do it and to each their own. Do what works for you.

Test all strategies on a demo account first. Once you're comfortable with it then apply to your real account.

It depends on the pip range of the chart you're trading and your equity. 2-5% of risk to your equity is generally sound advice, but if you're on a 200-pip range chart that may still be way too much, depending on your lot size. Hope that makes sense.

It totally depends on my analysis and confidence level. As normal occasion I normally take 1%-2% risk of my trading balance. But sometimes I can not afford taking such short sl level on big trades. So at that point I sometimes take 5% risk on my trade. But on general basis I seriously think we should not take more than 2% risk on our trade.

Can anyone suggest me when scalping how much risk is more appropriate ?

@nobody_in_particular:

The Kelly formula tells you what percent of your capital you should risk per trade, in order to maximize your return. If your position sizes exceed this value, your projected rate of return actually falls away. This might seem surprising, but it is all explained here. The Kelly logic shows us that the greater our profit factor (= $win/$lost), the greater the mathematical justification for a bigger bet/position size, a win-win situation.
Note: The Kelly algebra in the link may be simplified to: K = P - (1-P)/B

If your account size is trivial, say $100, and risk/drawdown/margin call is of no consequence, then you can attempt to maximize your return by simply using the Kelly value.

On the other hand, if drawdown is important to you, then you will want to also consider risk of ruin (some info and formulae in the links here). The difference between risk of ruin and risk of drawdown is explained here, and the link also includes an on-line facility to calculate both. Hence your goal is to size your positions in such a way that you find a good balance between maximizing your returns, while also keeping drawdown within personally acceptable limits.

An equity curve simulator (or here) can be a very useful tool for helping you to build a suitable risk model. Given the win rate and average RR of your strategy, you can use the simulator to run a Monte Carlo type analysis, experimenting with different risk% per trade values, and see projected return and risk outcomes over a given number of trades, which can help you find a position size that is both mathematically optimal and that you also feel personally comfortable with. Due to the nature of statistical fluctuation, the resulting equity curves can be more volatile (especially over a long period of time) than many traders expect, making something approaching the textbook 1%-2% risk per trade seem somewhat more sensible. But ultimately there's no right or wrong answer; it comes down personal goals and tolerances that can also be justified by the efficacy of your strategy.

Finally, position size should be calculated so that risk is consistent across each position, otherwise you run the risk that one larger-sized loss could wipe out the progress made by several smaller wins. However, if certain entry setups have a higher probability of success than others, then you're mathematically justified in increasing position size to a level that's commensurate with the improved probability.

I'd suggest no more than 1% to 5% of your equity. This depends on your risk appetite. If you have s trading system where your scalping works great for you then risk what you like.

I'd suggest starting with smaller amounts or a demo account and weighing things like the commission and the amount of pips you need to cover things. If your broker has zero commission then fine. But work it out first then scale upwards based on your risk appetite.

//-----

hey tom..... some people do risk a lot....

//-----

hey tyler...... my risk per trade is not a constant..... it varies with the trade's odds of success ..... the odds of success chooses the lot size, nothing more.....

so at a minimum, my risk would be 0.5% ..... at a maximum it would be 5%.... over all average is probably 1.5 ......h

I risk about 0.01% of my capital. I used to start with 5% back when I had 1000€. Then gradually went down.

This is a ambiguous question................

1. per contract?
2. per pair?
3. per total account?
4. per SL?
5. per day?

Alien uses 50 to 75 % of his margin, spreads it out over 10 pairs, spreads it out over 6 contracts on each pair, and keeps revolving it for profit in 1 to 3 days..............

My risk is 2% of my capital for each trade. Similarly, the most silly introduction to risk is 4%. It proposes I open most crazy of 2 trades. I figure everyone should keep up their hazard association rules. Without overseeing risk in trading entire arrangement achievement is farfetched. Stop loss is a part of risk management.

Most of the time I stick to the infamous 2% per trade rule. For those who are not familiar with it, here is some quite simple and good explanation of it:
https://www.investopedia.com/univers...ules/rule3.asp

1.2-1.4% per trade to keep the DD low. On some accounts higher risk per trade is used.

Depending on your Trading Approach but I think 1% is good enough

1-2%, depending on how good of a trade it is.

1% or less depending on margin requirements and how many open trades I have. I do however add-on to trades after pullbacks so long as my trend-line is not broken.

-Ric

There is no specific answer, because from all trading techniques scalping contains huge risk and this risk ratio cannot be controlled without long term experience.

Balls deep, go hard or go home..... and it's gone.

Best Crypto trading video, not sure how to make it open properly.

https://twitter.com/Pepillionaire/st...97343456505856

I always try to trade with low risk ratio but I can handle it particularly during news. now I am looking for a mentor who can make me knowledgeable trader in news trading.

I just avoid trading during big news events altogether.

but don't you think sometimes big news events give good trading opportunity also