AlgoBars
Risk per trade
How much should
you risk per trade?
A common rule is to risk a small fixed share of your account on each trade, often 1% or less, so a losing streak cannot wipe you out. Your position size then comes from that risk and your stop loss: position size equals the amount you are willing to lose divided by the distance to your stop. AlgoBars calculates it for you with a free lot size calculator, or automatically with auto position sizing.
Last updated · Trading involves risk of loss.
Worked example
- Account: $10,000. Risk 1%: $100.
- Stop loss is 50 pips away on EUR/USD, where 1 standard lot moves about $10 per pip.
- Size = $100 / (50 pips × $10) = 0.2 lots.
Why a small fixed risk works
| Risk per trade | Account left after 10 losses in a row |
|---|---|
| 1% | About 90% |
| 2% | About 82% |
| 5% | About 60% |
| 10% | About 35% |
Good to know
Next steps
How much should I risk per trade?
Many traders risk 1% or less of their account per trade.
How do I calculate position size?
Divide the amount you are willing to lose by the distance to your stop loss, in money per unit.
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