🧮 Day by day Danger Limits — The Formulation That Saves Accounts
🎯 The Lesson
Markets are unpredictable.
Some days, every part works.
Different days, nothing does.
With out a every day danger restrict, these dangerous days turn into disasters.
Professionals don’t await that — they cease when the numbers say cease.
⚙️ Step 1: Set a Day by day Loss Restrict
Your every day loss cap needs to be 1–2% of whole fairness.
Which means you probably have $10,000:
-
1% = $100 max every day loss
-
2% = $200 max every day loss
When you hit that quantity, you shut down buying and selling for the day.
This rule protects your week — and your psychology — from one dangerous session.
📊 Step 2: Reverse-Engineer Your Place Measurement
In case your every day loss restrict = $200 and also you danger 1% per commerce ($100),
you may afford two failed trades per day earlier than stopping.
Instance:
🧩 Step 3: Monitor “Warmth” and “Fairness at Danger”
Account Warmth = whole open danger throughout all trades.
When you have two trades open risking $100 every → whole warmth = $200.
In case your every day loss restrict can also be $200, you’ve already maxed out — no new trades allowed.
Professionals by no means exceed their most warmth degree.
That’s how they keep alive by means of volatility.
🔑 The 1-2-4 Framework
1️⃣ 1% danger per commerce
2️⃣ 2% every day loss restrict
4️⃣ 4% weekly drawdown cease
If you happen to follow this easy system, you’ll all the time commerce one other day.
🚀 Takeaway
Survival is the true edge.
A dealer with out limits is playing; a dealer with limits is scaling.
Management your losses — the income will observe.
📢 Be part of my MQL5 channel for extra buying and selling & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
