5% risk per trade? | Page 5 | Crypto Craft

Options

Go to
Permalinks
Print Thread

Similar Threads

Percentage vs. Pips per Trade vs. Pips per Day/Hour! 7 replies

Personal Take Profit and Stoploss (per human, not per trade) 0 replies

One trade per daily bar, or per X bars on current timeframe 0 replies

1 trade per pair per year 6 replies

Rationale behind "Risk Per Trade" and "Risk/Reward Ratio"? 8 replies

Attachments: 5% risk per trade?
Exit Attachments

5% risk per trade?

  • #81
  • Dec 31, 2016 5:18am Dec 31, 2016 5:18am
I don’t think I’d ever have the courage to risk as much as 10% of my account.
  • #82
  • Jan 7, 2017 2:26pm Jan 7, 2017 2:26pm
Quoting mlawson71
I dont think Id ever have the courage to risk as much as 10% of my account.
But it's 10% of half your capital.
  • #83
  • Jan 9, 2017 3:47am Jan 9, 2017 3:47am
risk of unwanted traders to achieve, but with the risk would be more cautious in making forex trading activity. And that I do on a demo account to learn without a risk
  • #84
  • Jan 9, 2017 6:00am Jan 9, 2017 6:00am
if you have a system of trading that had a good win rate per week/month etc and has had this for lets say 4-6 months or more... then 1%/2% is okay but you could be more confident and risk 3/4/5+%

compounded that DOES NOT MEAN 20 LOSSES = everything

work it out

also on small accounts whats the harm in risking 5%...?
  • #85
  • Jan 9, 2017 8:45pm Jan 9, 2017 8:45pm
When they say don't risk more than 1-2% of your account, what do they mean? Let's say i have an account of 1000 euro's. Can someone give examples?
  • #86
  • Edited 4:16am Jan 10, 2017 3:56am | Edited 4:16am
Quoting Ali1990
When they say don't risk more than 1-2% of your account, what do they mean? Let's say i have an account of 1000 euro's. Can someone give examples?
You risk 2% of your 1000 euro account if maximum of drawdown during the trade is 20 euro.
  • #87
  • Jan 10, 2017 5:06pm Jan 10, 2017 5:06pm
Quoting yg10
{quote} You risk 2% of your 1000 euro account if maximum of drawdown during the trade is 20 euro.
Ok, thanks!
  • #88
  • Jan 24, 2017 6:44am Jan 24, 2017 6:44am
What about 10% risk to trade 10 times ?
  • #89
  • Jan 24, 2017 2:51pm Jan 24, 2017 2:51pm
Quoting Purusha
What about 10% risk to trade 10 times ?
After ten loses risking each time 10% of your current balance, you will still have 34.8% of your initial capital.
  • #90
  • Jan 25, 2017 5:39am Jan 25, 2017 5:39am
If one ends up with one third of their capital they might as well stop trading on that account.
  • #91
  • Jan 28, 2017 1:10pm Jan 28, 2017 1:10pm
Quoting yg10
After ten loses risking each time 10% of your current balance, you will still have 34.8% of your initial capital.
That's the positive side of 'fixed fractional' sizing (i.e. risking N% per position):
You win, and your position sizes increase (in absolute dollar terms), causing your account equity to grow exponentially.
You lose, and your position sizes decrease, helping to preserve the remaining capital.

However, the deeper you get into drawdown, the harder your remaining capital must work, to recover back to the starting point.
In your example, if you lose two-thirds of your account, you need to triple your remaining equity to get back to breakeven.
In general, if you suffer N% drawdown, then it requires (100 x N)/(100 - N)% return on the remaining equity, to recover to breakeven.
  • #92
  • Jan 28, 2017 9:42pm Jan 28, 2017 9:42pm
Quoting hanover
{quote} That's the positive side of 'fixed fractional' sizing (i.e. risking N% per position): You win, and your position sizes increase (in absolute dollar terms), causing your account equity to grow exponentially. You lose, and your position sizes decrease, helping to preserve the remaining capital. However, the deeper you get into drawdown, the harder your remaining capital must work, to recover back to the starting point. In your example, if you lose two-thirds of your account, you need to triple your remaining equity to get back to breakeven....
My response was strictly arithmetical and I did not want to put any formulas answering to question:
Quoting Purusha
What about 10% risk to trade 10 times ?
  • #93
  • Jan 30, 2017 4:11am Jan 30, 2017 4:11am
Risk tolerance is intimately linked to emotional ability to handle such risk. Two different individuals can employ the exact same strategy profitably vs non-profitably based on their emotional ability to handle such risk tolerances. One may be better suited to trading at 1% risk, another at 10% risk. It really is an individual trait.
  • #94
  • Jan 30, 2017 6:45am Jan 30, 2017 6:45am
Quoting anatman0000
Risk tolerance is intimately linked to emotional ability to handle such risk. Two different individuals can employ the exact same strategy profitably vs non-profitably based on their emotional ability to handle such risk tolerances. One may be better suited to trading at 1% risk, another at 10% risk. It really is an individual trait.
Good point. Emotional stability is vital for any trader who wishes to make a profit. Unfortunately it takes quite a while to learn to remain calm.
  • #95
  • Jan 30, 2017 10:56pm Jan 30, 2017 10:56pm
Quoting anatman0000
Risk tolerance is intimately linked to emotional ability to handle such risk. Two different individuals can employ the exact same strategy profitably vs non-profitably based on their emotional ability to handle such risk tolerances. One may be better suited to trading at 1% risk, another at 10% risk. It really is an individual trait.
Correct!
  • #96
  • Feb 2, 2017 4:38am Feb 2, 2017 4:38am
Especially for beginners, I would not recommend risking more than the aforementioned 2%. Otherwise, they will end up blowing their accounts very quickly.
  • #97
  • Feb 14, 2017 2:35am Feb 14, 2017 2:35am
I had a similar problem on a bot im building,

50% win rate, 1.3-to-1 reward-to-risk, and my numbers are good most of the time.

What i did to get those big drawdowns limited was to treat my ea profit graph like a moving average indicator.

seen as the RR is so close its pretty easy to see a dip in the % profit moving average and ascertain abnormal losses (pairs become uncorrelated or whatever)

I lower my trade size by (X) and then wait for my average% profit per trade to start creeping UP, telling me whatever was wrong with the market is likely sorted and I start upping my trade size by (X).

(X) could be 5-10% of my "NORMAL" trade size and i sometimes need to take 5-10(x's) over time while my EA sorts itself out.

NOTE: you are in effect trading on your trades lol
  • #98
  • Feb 16, 2017 5:08pm Feb 16, 2017 5:08pm
ahh risk management in % numbers.. lol the internet and their copy/paste forever; you can easily tell who traded for real and for a decent amount of time from the rest
  • #99
  • Feb 16, 2017 8:13pm Feb 16, 2017 8:13pm
Quoting havo
ahh risk management in % numbers.. lol the internet and their copy/paste forever; you can easily tell who traded for real and for a decent amount of time from the rest
trade by % is exactly what you do everytime you trade ?

Or are you not risking a % of your account on a "%" movement EVERY TIME!! you trade with a stop loss?
  • #100
  • Feb 17, 2017 4:44pm Feb 17, 2017 4:44pm
It seems logical that the lower % risk you take per position, the longer you can be in business. Small and steady does it.
0 traders viewing now