Why we cap risk at 1% per trade (and you should too)

Risk-per-trade isn't about being conservative — it's about staying in the game long enough for your edge to play out. At 1% risk, a 10-loss streak costs you ~9.5% of account equity (compounding works against you on losses). At 3% risk, the same streak costs ~26%. Recovering from a 26% drawdown requires a 35% gain. Pick a number you can stomach during your worst week, not your best. We use 0.75–1.25% per signal and adjust down during high-impact news weeks.