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Risk per trade

Dollar amount (or % of equity) you lose if the stop on a single trade hits.

Risk per trade is the maximum dollar loss accepted on a single trade if the stop is hit, normally expressed as a percent of account equity. Industry consensus for retail discretionary traders is 1–2% per trade; systematic / portfolio approaches often size lower (0.25–0.5%) since correlated positions stack risk.

Risk per trade is the input to position-size math: with risk_per_trade fixed, the position size adjusts inversely to stop distance — wider stops mean smaller positions, tighter stops mean larger ones. This keeps the dollar pain constant.

Compound math matters: at 2% risk per trade with 50% win rate and 1:1 RR, a string of five losses leaves you at 0.98^5 ≈ 90.4% of starting equity. At 10% risk per trade, the same streak takes you to 59.0%.

Formule

risk_per_trade$ = equity · risk_pct

Exemple

Equity 10,000 USDT, risk_pct 1%. Risk per trade = 100 USDT — that is the max loss if today's stop hits.

Comment Noon Barbari utilise Risk per trade

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