RISK MANAGEMENT RULES

To ensure stability and consistency in the market, these are my risk management rules –
The market will always be Probabilistic hence, rules keep the trader amid uncertainties.

There will be just few pairs to trade to limit risk exposure.

I will look for opportunities only in these markets strictly, in order of PRIORITY.
i. EURUSD
ii. CADJPY

iii. GOLD
iv. BTCUSD

Rare cases:
v. XRPUSD

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CATEGORY 1 –
7-8 figures: $1m - $99m
1. Risk per trade, 0.25 – 1% per trade position.
- Max trade loss for a day – 2%
- Max trade loss for a week – 4.5%
At any moment, the percentage is exceeded, that is all for the day or week.
It means, I can only lose 2% max in a day, and I can only lose 4.5% max in a week.

(PS – If there are losses consecutively for 2 weeks, which totals 9%, take a week off to re-assess
and come back later).

2. Trade Objectives: 3-5R at least.

Once 3-5R is achieved, 80% of position size is closed if at all the TP is still distance away.

3. No SL shifted after entering a trade.

Either it takes me out, or I close the trade myself. But no shifting of SL.
This will mean that every trade must be carefully planned before entering at all.

4. Closing of trade position every Friday –

Except in exceptional cases, where the premise is on a HTF bias (monthly, weekly).

5. After a major win (10% and above), take a break off trading for that week till the next week.
This curbs addiction to trading.

6. There should be no trading in these environments:

i. High Impact Speech
ii. FOMC related event
iii. Nonfarm Payroll

These environments are “wild cards”, and price can do unexpected things. These should be days
you strictly do nothing. Exit existing trades and stay out of the market during this event, till the
event is over. Preserving your capital should be your priority.

2
7. Monday(s) and Friday(s) should be excluded from your trading days
These days should be to boost your trading psychology – listen to a podcast, watch a video, read
a book, etc.
Except in rare cases where you really must, wait for NYKZ (New York Kill Zone):
Premise I: If London Open is bullish, buy the optimal trade entry retracement (618, 705, 786 fib
levels) to raid the Liquidity Pools above.
Premise II: If London Open is bearish, buy the optimal trade entry retracement (618, 705, 786
fib levels) to raid the Liquidity Pools below.

Tuesday to Thursday should be your major trading days where you scout for opportunities. Less
trading, high rewards.

8. The market will always remain probabilistic. There should always be a perception of risk
when entering trade positions in the market.

3
CATEGORY 2 –
9-10 figures: $100m - $1b
1. Risk per trade, 0.1 – 0.5% per trade position.
- Max trade loss for a day – 1%
- Max trade loss for a week – 2.5%
At any moment, the percentage is exceeded, that is all for the day or week.
It means, I can only lose 1% max in a day, and I can only lose 2.5% max in a week.

(PS – If there are losses consecutively for 2 weeks, which totals 5%, take a week off to re-assess
and come back later).

2. Trade Objectives: 3-5R at least.

Once 3-5R is achieved, 80% of position size is closed if at all the TP is still distance away.

3. No SL shifted after entering a trade.

Either it takes me out, or I close the trade myself. But no shifting of SL.
This will mean that every trade must be carefully planned before entering at all.

4. Closing of trade position every Friday –

Except in exceptional cases, where the premise is on a HTF bias (monthly, weekly).

5. After a major win (10% and above), take a break off trading for that week till the next week.
This curbs addiction to trading.

6. There should be no trading in these environments:

i. High Impact Speech
ii. FOMC related event
iii. Nonfarm Payroll

These environments are “wild cards”, and price can do unexpected things. These should be days
you strictly do nothing. Exit existing trades and stay out of the market during this event, till the
event is over. Preserving your capital should be your priority.

4
7. Monday(s) and Friday(s) should be excluded from your trading days
These days should be to boost your trading psychology – listen to a podcast, watch a video, read
a book, etc.
Except in rare cases where you really must, wait for NYKZ (New York Kill Zone):
Premise I: If London Open is bullish, buy the optimal trade entry retracement (618, 705, 786 fib
levels) to raid the Liquidity Pools above.
Premise II: If London Open is bearish, buy the optimal trade entry retracement (618, 705, 786
fib levels) to raid the Liquidity Pools below.

Tuesday to Thursday should be your major trading days where you scout for opportunities. Less
trading, high rewards.

8. The market will always remain probabilistic. There should always be a perception of risk
when entering trade positions in the market.

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THESE BINDING RULES WILL PRESERVE ANY TRADER IN THE MARKET
REGARDLESS OF THEIR TRADING METHODOLOGY.

SAFE TRADING.

dejoea7@gmail.com
Telegram – @ICTFLASHCARDDRILLS