🧮 Daily Risk Limits — The Formula That Saves Accounts
🎯 The Lesson
Markets are unpredictable.
Some days, everything works.
Other days, nothing does.
Without a daily risk limit, those bad days become disasters.
Professionals don’t wait for that — they stop when the numbers say stop.
⚙️ Step 1: Set a Daily Loss Limit
Your daily loss cap should be 1–2% of total equity.
That means if you have $10,000:
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1% = $100 max daily loss
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2% = $200 max daily loss
Once you hit that number, you shut down trading for the day.
This rule protects your week — and your psychology — from one bad session.
📊 Step 2: Reverse-Engineer Your Position Size
If your daily loss limit = $200 and you risk 1% per trade ($100),
you can afford two failed trades per day before stopping.
Example:
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Account: $10,000
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Per-trade risk: $100
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Two losses = –$200
🚫 You stop for the day — not because you’re weak, but because you’re disciplined.
🧩 Step 3: Track “Heat” and “Equity at Risk”
Account Heat = total open risk across all trades.
If you have two trades open risking $100 each → total heat = $200.
If your daily loss limit is also $200, you’ve already maxed out — no new trades allowed.
Professionals never exceed their maximum heat level.
That’s how they stay alive through volatility.
🔑 The 1-2-4 Framework
1️⃣ 1% risk per trade
2️⃣ 2% daily loss limit
4️⃣ 4% weekly drawdown stop
If you stick to this simple system, you’ll always trade another day.
🚀 Takeaway
Survival is the real edge.
A trader without limits is gambling; a trader with limits is scaling.
Control your losses — the profits will follow.
📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
