Risk Management

Position sizing, portfolio caps, and drawdown controls.

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Risk Management

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Beginner Explanation

Risk Management is the difference between a professional and a gambler. Signal Compass computes position size from your account, stop distance, and per-trade risk — automatically.

Step-by-Step Walkthrough

  1. Open the Risk Calculator.
  2. Set per-trade risk (typically 0.5%–1%).
  3. Note how ATR distance changes position size.
  4. Review portfolio-level exposure limits.
  5. Understand daily drawdown lockout.

Helpful Tips

  • Risk per trade should stay constant regardless of confidence.
  • Correlated positions increase real risk beyond the per-trade number.
  • The daily lockout is your friend, not your enemy.

Common Mistakes

  • Sizing up after a winning streak.
  • Ignoring correlation between USD-quoted pairs.
  • Overriding the daily lockout after a losing day.

Best Practices

  • Never risk more than 1% per trade in your first year.
  • Review portfolio exposure weekly.
  • Take a full day off after hitting the daily lockout.

Need more help?

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