Risk Management for SMC

Risk management is the only thing you can control in trading. Without it, even the best strategy will fail.

Capital Preservation

Your primary job as a trader is to protect your capital. Never risk more than 1-2% of your account on a single trade.

The Mathematics of Ruin

If you lose 50% of your account, you need a 100% gain just to break even. This is why avoiding large drawdowns is crucial.

• Risk per trade: 0.5% to 1%
• Daily Loss Limit: 2-3%
• Max Drawdown: 5-10% (Stop trading and review)