Risk Management

Trading always involves risk. It’s the potential returns that entice us to take these risks. However, this does not mean that we need to gamble. Trading is all about statistics and probabilities and money management.

We manage our trading risks in a number of ways including:

  • Diversity - trading multiple markets and time frames

  • Small trade sizes - each individual strategy only trades small sizes which limits risk if trade becomes unmanaged

  • Definitive stop losses when order is placed. 

  • Maximum risk per trade of no more than 0.5% of account balance. Often less.

  • No open trades over weekends. We ensure all trades are closed for the weekend to ensure we aren’t ‘in the market’ if a major economic event happens over the weekend.

  • And more

Clients can also manage their own risk when trade copying by:

  • Adjusting proportional trade sizing to suit risk profile

  • Setting their own equity protection so that all trades will close and the system stops further trading if account equity falls below a certain percentage or dollar value.

  • Ability to turn on and off whenever they choose.

Posted 20 September 2023