Risk Management Plan

Risk Management

  • I will vow to know my risk=> before and after entry

But what is my risk?

  • This will be based on the setup & entry.
  • I will risk 1-3% per trade on a normal day-to-day basis. In addition my risk reward must always be better than 1:1.
  • daily limit will be 4-5% and weekly limit will be 10%
  • Daily limit will be 3% and a weekly limit of 9-10%.
    • once the weekly limit is hit there is no more trading until the following week. (a trading week starts Wednesday and ends Tuesday.)
  • If I consistently bring positive profit for 10 days I can double my risk per trade for the week but continue keeping the same 5% a day limit and 10% a week limit
  • my risk will be between $2.5-$3 stop loss with a TP of $5 or more.
  • as for a daily limit I have my account locked at 20%, I’ve thought about moving that back to 10% but that will move up to 10% once I reach 5K.

So how will I get the correct lot size?

I made an application in visual studio which will calculate my risk based on lot size (Pip Stop LOSS) or Stop loss (Lot size). example below:

This application must be used religiously & with every trade . By doing this I can realize my risk & become more comfortable taking the trade… For pending, only 0.5% risk no matter how good the opportunity looks.

Trading Pairs

S&P500 Futures Contracts

Trading Times

6PM – 9:45PM
9:30AM – 1PM
6PM – 10:15PM
My Trading week will start Wednesday and end Tuesday. 
This will reduce cheating on the Thursday if I do Sunday to Fridays.


  • Not go over that 5% (daily hard limit)
  • not open total lots equal to account size * 0.0003
    • IE: 1000 account means my day lot size can only equate to 0.30. this means I can open 3 x 0.1 or 2×0.15s.
  • Trade pairs outside of the plan
  • Trade News on Phone.(its hard to keep emotion out of it and focus)

IF THESE RULES ARE BROKEN THEN I WILL NOT TRADE until the start of the next trade week or the week after. (Wednesday – Tuesday)


  • not full margin
  • Not skew from the contract size
    • When in doubt take the Contract size = Account size /40/5/5. ie 1000/40/5/5 = 1
    • or 2500/40/5/5= 2.5