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Risk Management Plan
Risk Management Plan
Initial Context:
● Starting Capital: $25,000
● Available Contracts: 4 Minis or 40 Micros
● Profit Goal: $1,500
● Trailing Threshold: $1,500
● Loss Limit: $1,500
● Risk Management Plan: Utilizing a 55-tick stop loss and aiming for a 1:2 risk-reward
ratio.
Detailed Plan:
● Contract Selection:
● Optimal Choice: 2 Micros per trade.
● Reasoning: Allows for a balance between risk and opportunity, with the ability to
undertake approximately 27 trades before hitting the loss limit.
Additional Notes:
● Continuous Monitoring: Ensure adherence to the risk per trade and regularly review
trade performance.
● Flexibility: Adapt the plan based on ongoing learning and changing market conditions.
● Success Factor: Regular monitoring, discipline, and adherence to risk management
principles are crucial.
Summary:
By strategically trading 2 micros per setup and maintaining a disciplined approach, the trader
can sustain approximately 27 losing trades before reaching the loss limit and needs around 14
successful trades to achieve the profit goal. This approach allows successfully passing the
evaluation while staying within the corrected risk parameters. Regular monitoring, learning, and
adaptability are paramount for maintaining and enhancing the efficacy of the trading strategy.
Initial Context:
● Starting Capital: $50,000
● Available Contracts: 10 Minis or 100 Micros
● Profit Goal: $3,000
● Trailing Threshold: $2,500
● Loss Limit: $2,500
● Risk Management Plan: Based on a 55 tick stop loss, trading with a 1:1 or a 1:2
risk-reward ratio.
Detailed Plan:
Contract Selection:
● Optimal Choice: 4 Micros per trade.
● Reasoning: This choice allows for a reasonable amount of trades before hitting
the loss limit, offering a balance between risk and opportunity.
Summary:
By strategically trading 4 micros per setup and maintaining a disciplined approach, the trader
can sustain approximately 22 losing trades before blowing the account and needs around 14
successful trades to achieve the profit goal, hence successfully passing the evaluation while
staying within the corrected risk parameters. Regular monitoring, learning, and adaptability are
paramount for maintaining and enhancing the efficacy of the trading strategy.
Initial Context:
● Starting Capital: $75,000
● Available Contracts: 12 Minis or 120 Micros
● Profit Goal: $4,250
● Trailing Threshold: $2,750
● Loss Limit: $2,750
● Risk Management Plan: Operating with a 55-tick stop loss and a focus on a 1:2
risk-reward ratio.
Detailed Plan:
● Contract Selection:
● Optimal Choice: 5 Micros per trade.
● Reasoning: Allocating 5 Micros per trade allows for sufficient trades before hitting
the loss limit, balancing risk and opportunity.
Maintaining Discipline:
● Continuous Learning: Regularly review and learn from each trade to enhance trading
strategies.
● Emotional Discipline: Maintain composure, particularly after a series of winning or losing
trades, to avoid irrational decision-making.
Additional Notes:
● Continuous Monitoring: Regularly review trade performance and adherence to risk per
trade.
● Flexibility: Adjust the plan based on ongoing learning and changing market conditions.
● Success Factor: Regular monitoring, discipline, and adherence to risk management
principles are crucial for the success of this revised plan.
Summary:
By strategically trading 5 micros per setup and maintaining a disciplined approach, the trader
can sustain approximately 20 losing trades before blowing the account and needs around 16
successful trades to achieve the profit goal, hence successfully passing the evaluation while
staying within the corrected risk parameters. Regular monitoring, learning, and adaptability are
paramount for maintaining and enhancing the efficacy of the trading strategy.
Initial Context:
● Starting Capital: $100,000
● Available Contracts: 14 Minis or 140 Micros
● Profit Goal: $6,000
● Trailing Threshold: $3,000
● Loss Limit: $3,000
Detailed Plan:
Contract Selection:
● Optimal Choice: 6 Micros per trade.
Risk per Trade:
● Loss with 6 Micros: $165 per trade.
● Profit Goal per Trade (1:2 RR): $330 per trade.
Daily Trading Strategy:
● Stop Trading: After 2 consecutive losing trades, halt trading activity for the day.
● Re-Entry: After a winning trade, consider re-entering with a lighter position.
Passing the Evaluation:
● Number of Successful Trades to Hit Profit Goal: ≈18 trades.
Blow Account Scenario:
● Number of Unsuccessful Trades to Blow Account: ≈18 trades.
Maintaining Discipline:
● Continuous Learning: Regularly review each trade and focus on learning.
● Emotional Discipline: Keep emotions in check and avoid irrational decision-making.
Initial Context:
● Starting Capital: $150,000
● Available Contracts: 17 Minis or 170 Micros
● Profit Goal: $9,000
● Trailing Threshold: $5,000
● Loss Limit: $5,000
Detailed Plan:
Contract Selection:
● Optimal Choice: 1 Mini per trade.
Risk per Trade:
● Loss with 1 Mini: $275 per trade.
● Profit Goal per Trade (1:2 RR): $550 per trade.
Daily Trading Strategy:
● Stop Trading: After 2 consecutive losing trades, halt trading activity for the day.
● Re-Entry: After a winning trade, consider re-entering with a lighter position.
Passing the Evaluation:
● Number of Successful Trades to Hit Profit Goal: ≈17 trades.
Blow Account Scenario:
● Number of Unsuccessful Trades to Blow Account: ≈18 trades.
Maintaining Discipline:
● Continuous Learning: Regularly review each trade and focus on learning.
● Emotional Discipline: Keep emotions in check and avoid irrational decision-making.
Initial Context:
● Starting Capital: $250,000
● Available Contracts: 27 Minis or 270 Micros
● Profit Goal: $15,000
● Trailing Threshold: $6,500
● Loss Limit: $6,500
Detailed Plan:
Contract Selection:
● Optimal Choice: 1 Mini & 2 Micros per trade.
Risk per Trade:
● Loss with 1 Mini & 2 Micros: $385 per trade.
● Profit Goal per Trade (1:2 RR): $770 per trade.
Daily Trading Strategy:
● Stop Trading: After 2 consecutive losing trades, halt trading activity for the day.
● Re-Entry: After a winning trade, consider re-entering with a lighter position.
Passing the Evaluation:
● Number of Successful Trades to Hit Profit Goal: ≈20 trades.
Blow Account Scenario:
● Number of Unsuccessful Trades to Blow Account: ≈17 trades.
Maintaining Discipline:
● Continuous Learning: Regularly review each trade and focus on learning.
● Emotional Discipline: Keep emotions in check and avoid irrational decision-making.
Initial Context:
● Starting Capital: $300,000
● Available Contracts: 35 Minis or 350 Micros
● Profit Goal: $20,000
● Trailing Threshold: $7,500
● Loss Limit: $7,500
Detailed Plan:
Contract Selection:
● Optimal Choice: 1 Mini & 5 Micros per trade.
Risk per Trade:
● Loss with 1 Mini & 5 Micros: $412.5 per trade.
● Profit Goal per Trade (1:2 RR): $825 per trade.
Daily Trading Strategy:
● Stop Trading: After 2 consecutive losing trades, halt trading activity for the day.
● Re-Entry: After a winning trade, consider re-entering with a lighter position.
Passing the Evaluation:
● Number of Successful Trades to Hit Profit Goal: ≈25 trades.
Blow Account Scenario:
● Number of Unsuccessful Trades to Blow Account: ≈18 trades.
Maintaining Discipline:
● Continuous Learning: Regularly review each trade and focus on learning.
● Emotional Discipline: Keep emotions in check and avoid irrational decision-making.
Summary:
These plans are structured to ensure the trader maintains a disciplined approach, allowing for a
balanced opportunity to achieve the profit goals while adhering to the stipulated risk parameters.
Regular monitoring, learning, and adaptability are key for maintaining and enhancing the
efficacy of the trading strategies.