Ask a question →

24 articles

Risk management

Stop loss, position sizing, R:R, diversification, the 1% rule and when to break it.

Choose a task

What would you like to do?

Three short paths help you choose the right explanation. The complete topic list follows below.

Size a position before entry

  1. The 1 percent rule — how to size positions and protect capital
  2. Position sizing for different SL — formula and examples
  3. Position sizing — calculate units for a stated loss budget

Check combined exposure

  1. Financial leverage — how to use it safely in forex trading
  2. Currency pair correlations in practice — reading the matrix
  3. Hedging positions — does opening opposite trades make sense?

Assess a result series and drawdown

  1. Expectancy — does your strategy really earn?
  2. Maximum drawdown — what does it mean for your account?
  3. Calmar ratio — annual return to maximum drawdown

Get started

Explore this topic

Position sizing — calculate units for a stated loss budget7 min →The 2% and 1% risk rules — compare loss sequences and assumptions8 min →Maximum drawdown — what does it mean for your account?8 min →
Follow the learning path →

All articles

Position sizing — calculate units for a stated loss budget7 min →The 2% and 1% risk rules — compare loss sequences and assumptions8 min →Maximum drawdown — what does it mean for your account?8 min →Position sizing for different SL — formula and examples10 min →Expectancy — does your strategy really earn?11 min →Compound vs fixed lot — which position sizing system?14 min →Risk management basics — the foundations every forex trader needs10 min →Sharpe ratio — what it really measures and where it breaks6 min →Sortino ratio — target shortfalls, calculation and limits7 min →Calmar ratio — annual return to maximum drawdown8 min →ATR trailing stop — advanced techniques for dynamic stops11 min →Sortino vs Sharpe ratio — which metric for a forex trader?8 min →Margin call mechanics — account thresholds and close-out8 min →The Kelly criterion — is it a good position-sizing tool?8 min →Anti-martingale system — sizing up positions on wins11 min →Hedging positions — does opening opposite trades make sense?6 min →Black swan events — will a stop-loss protect your account?6 min →CVaR — what it says about tail risk that VaR misses7 min →"We will recover your money from the broker" — the recovery scam7 min →Risk management — connect positions, exits and account limits7 min →Pyramiding — the position-scaling strategy for riding trends9 min →The 1 percent rule — how to size positions and protect capital8 min →Financial leverage — how to use it safely in forex trading11 min →Currency pair correlations in practice — reading the matrix9 min →