📘 How to Design a Personal Risk Rulebook You’ll Actually Follow
🎯 The Lesson
Most traders don’t fail because they lack knowledge.
They fail because they lack clear, written risk rules.
A strategy without a risk rulebook is just a theory.
A written risk framework turns trading into a controlled system.
If it’s not written, it won’t be followed consistently.
🧱 1. Start With Fixed Risk Per Trade
Your first rule must define:
👉 Risk per trade = X%
Recommended:
-
0.5% = conservative
-
1% = balanced
-
2% = aggressive
Example:
Account = $8,000
Risk = 1%
Max loss per trade = $80
No exceptions.
No “feeling confident.”
No doubling size.
📉 2. Add a Maximum Daily Loss Rule
Professional traders stop for the day after:
👉 –2% daily drawdown
Example:
Account = $8,000
Daily limit = –$160
If hit → platform closed.
This prevents emotional escalation and protects weekly performance.
📊 3. Define Weekly and Monthly Risk Limits
Weekly limit: 3–4% max
Monthly limit: 8–10% max
If reached → stop trading and review.
These limits prevent account damage from a single bad period.
🔗 4. Set Maximum Correlated Exposure
Rule example:
👉 Total exposure across correlated trades = max 4%
If trading:
-
EURUSD
-
GBPUSD
-
XAUUSD
These depend on USD.
Treat them as one idea.
Cluster risk must be capped.
🔁 5. Add a Losing Streak Protocol
If you lose:
-
3 trades in a row → cut size by 50%
-
5 trades in a row → stop trading 24 hours
This rule alone can save your account long-term.
📈 6. Define Position Size Scaling Rules
Only increase risk when:
✔️ equity is at a new high
✔️ performance stable for 20+ trades
✔️ drawdown under 5%
Never increase risk after one win.
Scaling must be structured.
🧮 7. Write Everything in One Page
Your personal risk rulebook should include:
-
Risk per trade
-
Max daily loss
-
Max weekly loss
-
Max monthly drawdown
-
Max correlated exposure
-
Losing streak adjustment
-
Scaling rules
-
Session restrictions
-
News trading rules
One page. Clear. Measurable. Enforceable.
🚀 Takeaway
A risk rulebook removes emotion from trading.
It protects you from your worst days and keeps you consistent on your best days.
The difference between a gambler and a professional is not intelligence —
it’s written rules.
Design your risk system.
Follow it strictly.
Let consistency compound.
📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
