Risk · Education SAMPLE POST — DRAFT
Risk Management Fundamentals: The Key to Surviving a Competition
The 1–2% rule, risk-reward ratios and drawdown control — and why they sit at the heart of the Trade With Atik Challenge scoring.
The 1–2% Rule
Professional traders commonly risk no more than 1–2% of their account balance on any single trade. This keeps the account alive even through a series of consecutive losses.
Risk-Reward Ratio
Make sure the potential profit on each trade exceeds the potential loss (for example 1:2). That way, your overall results can stay positive even with a lower win rate.
Drawdown Control
Maximum drawdown accounts for 30 points in the competition scoring. Set a maximum daily loss limit and stick to it.
Educational purposes only: this article is for learning only. It is not a trade signal, investment advice or a guarantee of profit.