Creating a Risk Plan
Use the Risk Planner to define position sizing and risk-to-reward before you trade.
8 min read
Define risk before entry
A risk plan starts with a maximum acceptable loss per trade, expressed as a percentage of account size, decided before you enter a position.
Position sizing and risk-to-reward
The Risk Planner calculates position size from your stop distance and risk tolerance, and helps you evaluate whether a setup's risk-to-reward justifies the trade.
Planning for drawdown
Set drawdown thresholds in advance that trigger a pause in trading activity, helping prevent a string of losses from compounding into larger mistakes.
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