🎯 The Lesson
Most traders respond to a losing week by trading bigger — trying to recover fast.
Professionals do the opposite.
They cut their size, slow down, and protect capital.
Because in trading, defense wins championships.
⚙️ Step 1: Use the “Risk Brake” Rule
When your account equity drops by 5% or more, reduce position size by 50% until you recover.
Example:
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Account: $10,000
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Normal risk: 2% per trade ($200)
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After –5% drawdown: risk = 1% per trade ($100)
This prevents small slumps from becoming deep holes.
You’ll recover slower, but you’ll actually recover — not blow up trying.
🧮 Step 2: Reset Your Equity Curve
At the end of each week, write your new balance.
If your curve is flat or down:
✅ Cut size
✅ Reduce trades
✅ Focus on quality setups only
Once you regain your peak balance, restore your normal risk.
This rhythm keeps your curve smooth and your emotions neutral.
📊 Step 3: Why It Works
When size is smaller:
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Losses hurt less
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Confidence rebuilds faster
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You focus on process, not pressure
Mathematically, the smaller your drawdown, the less profit you need to recover:
| Drawdown | Needed Gain to Recover |
|---|---|
| 5% | 5.3% |
| 10% | 11% |
| 20% | 25% |
Cutting size early means less work later.
💡 Step 4: Treat Risk Like Fuel
If your car’s running low on fuel, you don’t floor the gas — you drive lighter.
Same logic here.
Reduce load, regain control, then accelerate again.
🚀 Takeaway
Big traders don’t think “How fast can I recover?”
They think “How long can I stay alive?”
Every recovery starts with smaller risk — and that’s what keeps pros in business.
📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
