This strategy focuses on effective risk management for trading with a funded account of $15k, keeping an 8% drawdown and profit limit in mind. It begins by calculating the appropriate lot size to minimize risk. This involves determining the maximum acceptable risk per trade, like 1-2% of the account, and using a lot size calculator to align with historical performance. Regular reassessment and maintaining discipline by sticking to the calculated lot size are pivotal.
Implementing risk management protocols is another key aspect, involving setting stop-loss and take-profit orders to manage potential losses and secure gains. A strict monitoring regimen ensures adherence, while preventive measures against over-leveraging and conducting a risk-reward analysis aid in mitigating risks. Constant reevaluation and adapting strategies to market volatility maintain trading robustness.
Lastly, adopting a disciplined trading plan includes setting specific goals and maintaining a structured routine. It discourages emotional decision-making by sticking to entry and exit signals. Consistent evaluation, engaging with trading communities, and continuing education are encouraged to refine trading strategies and adapt to market dynamics.
The strategies
⛳️ Strategy 1: Calculate appropriate lot size
- Assess the account balance and its current limits
- Define the maximum acceptable risk per trade, generally 1-2% of the account
- Calculate the dollar value of the risk based on the 8% drawdown
- Determine the potential pip loss on average for your trades
- Divide the allowable dollar risk by the pip risk per trade to find the lot size
- Ensure lot size corresponds with broker's minimum requirements
- Review historical trades to confirm the risk aligns with past performance
- Use a lot size calculator for quick computations
- Reassess lot size regularly according to account growth
- Maintain discipline by adhering to the calculated lot size
⛳️ Strategy 2: Implement risk management protocols
- Set stop-loss orders for every trade to limit potential losses
- Use take-profit orders to secure gains at the target profit level
- Monitor trades constantly to ensure compliance with risk management
- Avoid over-leveraging the account which can increase risk dramatically
- Conduct a risk-reward analysis before placing any trade
- Reevaluate your trading strategy based on current market conditions
- Keep detailed records of trades for analysis and improvement
- Test strategies on a demo account to measure risk and performance
- Limit the number of open trades according to your risk capacity
- Adapt risk management strategies according to changing market volatility
⛳️ Strategy 3: Adopt a disciplined trading plan
- Set specific, realistic trading goals and adhere to them
- Develop a structured daily trading routine
- Define entry and exit signals clearly in your trading plan
- Establish a review process to evaluate each trading session
- Limit emotional decision-making by sticking to your predetermined strategies
- Reaffirm the trading plan's guidelines before each session
- Allocate time for continuing education and market research
- Utilise trading journals to track performance and refine strategies
- Engage with trading communities for shared insights and support
- Regularly update the trading plan based on market changes and personal performance
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
