Every trader who lasts learns it, usually the hard way: you do not get paid for being right. You get paid for still being here next year. Risk is decided before the trade is opened, not after.
The only number you fully control
Not yours to control.
Not yours either.
Fixed in advance by a stop loss, while a take profit fixes what you are aiming for.
The trap of the systems that “never lose”
Fixed 1% risk, with a stop loss
92.3%of the account leftMartingale: double after each loss
256xthe first trade, after 255 units lostWhy losses hurt more than they look
What sound risk looks like
- 1A stop loss on every trade
Placed when the trade is opened, never moved further away.
- 2A fixed, small risk per trade
A percentage of the account: the size follows the stop, not the other way round.
- 3A target that pays for the losers
Winners larger than losers: you can be wrong more often than right and still grow.
- 4A stop that adapts
Sized from current volatility: room in a fast market, tight in a quiet one.
- 5A limit for the day
When it is reached, trading stops until tomorrow.
The equity curve tells you which you have
Every K3Bxn Expert Advisor is built on that side of the line: a predefined stop loss and take profit on every trade, and no martingale, no grid, no arbitrage. Next: win rate, risk to reward and the losing streak you should expect.
Check yourself
2 questions
An account loses 50%. What gain brings it back?
Half an account has to double to get back to where it was.
After ten losses in a row, how big is a martingale’s next trade?
It doubles every time: two to the power of ten.