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Risk Management

Size It Right.

The best signals in the world won't save you from bad sizing. Here's how to survive long enough to let the edge play out.

The #1 Rule: Never risk more than 25% of your drawdown limit on a single trade.

Your drawdown limit is your lifeline. Blow it and you're done — account gone, fees wasted, back to square one.

Note: All backtest P&L figures use 2 contracts per instrument and include $5.00 round-turn commission per contract.

The strategy has a 56% win rate — that means 44% of trades lose. You will have losing streaks. Three losers in a row? Happens regularly. Four? Not rare. Five? It'll happen eventually.

Size so you survive them. The edge only works if you're still in the game when the wins come back.

What you get on every trade.

Understanding signal structure is essential for proper sizing.

Signal Components

  • Entry Price — exact level to enter
  • Stop Loss — structure-based, non-negotiable
  • TP1 — partial exit (50% of position)
  • TP2 — runner target for remainder

TP1 exits 50% of position. Stop moves to breakeven on the remainder.

Typical Stop Distances

  • NQ — Median 9.5 pts, avg 20 pts ($190–$590 typical, up to $1,100 on wide stops)
  • GC (Gold) — Median $1.40, avg $2.80 ($140–$410 typical, up to $760 on wide stops)
  • SIL (Silver) — Median $0.04, avg $0.08 ($200–$525 typical, up to $990 on wide stops)

Based on 2,163 trades. "Typical" = 25th–75th percentile. 10% of trades have wider stops — always check the signal's risk before entering.

Size for your account.

Three prop firm tiers, three sizing strategies. Start conservative. Scale with profits.

🟡 Conservative Start

50K Account

Max Loss: $2,000 · Max 2 Lots
Recommended Size 1 Contract
Max Risk / Trade ~$200–$590
% of Drawdown 25–30%

Instrument Sizing

  • NQ: 1 contract
  • GC: 1 contract
  • SIL: 1 contract
At 1 contract, you can take 3–4 consecutive losers before danger. With a 56% win rate, a 4-loss streak happens ~3.8% of the time.
📈 Once balance hits $2,000+, your effective cushion doubles. Consider 2 contracts.
✅ More Room to Work

100K Account

Max Loss: $3,000 · Max 3 Lots
Recommended Size 1–2 Contracts
Max Risk / Trade ~$750
% of Drawdown 25%

Instrument Sizing

  • NQ: 2 contracts OK (typical risk ~$380–$1,180 = 13–39% of DD)
  • GC: 2 contracts (typical risk ~$280–$820 = 9–27% of DD)
  • SIL: 1 contract until buffer builds (P90 risk = $990)
Most trades risk $140–$525 per contract. At 1–2 contracts, you're under the 25% threshold on the vast majority of signals. Check the wider stops before entering.
📈 At $3,000+ balance, you have a $6,000 effective cushion. Scale to 2–3 contracts.
✅ Most Flexibility

150K Account

Max Loss: $4,500 · Max 5 Lots
Recommended Size 2 Contracts
Max Risk / Trade ~$1,125
% of Drawdown 25%

Instrument Sizing

  • NQ: 2 contracts ($400–600 = 9–13% of DD)
  • GC: 2 contracts ($280–$820 = 6–18% of DD)
  • SIL: 2 contracts ($400–$1,050 = 9–23% of DD)
At 2 contracts, a typical NQ trade risks $380–$1,180 (8–26% of DD). You have the most room here, but still respect the P90 stops — they can hit $1,100+/contract.
📈 At $4,500+ balance, scale to 3–4 contracts. Your effective cushion is $9,000+.

Survive. Scale. Compound.

The three phases of building a funded account. Don't skip steps.

1

Phase 1: Survive

Start at minimum size. Build buffer. Goal: get your balance to equal your max loss limit — effectively doubling your cushion. No hero trades.

2

Phase 2: Scale

Increase by 1 contract. Your edge compounds faster with more size, but only after you've proven the buffer. Patience pays.

3

Phase 3: Compound

At 2x your max loss limit in balance, you're playing with house money. Size up aggressively. This is where the P&L gets exciting.

50K Account · $2,000 Max Loss

BalanceCushionContracts
$0 (start)$2,0001
$1,000$3,0001
$2,000$4,0002
$4,000$6,0002–3
$6,000+$8,000+3+

100K Account · $3,000 Max Loss

BalanceCushionContracts
$0 (start)$3,0001–2
$1,500$4,5002
$3,000$6,0002–3
$6,000$9,0003–4
$9,000+$12,000+4+

150K Account · $4,500 Max Loss

BalanceCushionContracts
$0 (start)$4,5002
$2,000$6,5002–3
$4,500$9,0003–4
$9,000$13,5004–5
$12,000+$16,500+5+

Don't have a funded account yet? Trade micros.

All our signals work with micro contracts. Same setups, 1/10th the risk.

Why Micros?

Micro contracts let you trade the exact same signals at a fraction of the risk. Perfect for learning the system with real money before sizing up to a funded account.

  • 1 micro = 1/10th the risk of a standard contract
  • Same entry, stop, and target levels
  • Build confidence without blowing up
  • Learn execution before real money is on the line

Micro vs Standard

  • MNQ — $0.50/tick vs $5.00/tick on NQ
  • MGC — $1.00/tick vs $10.00/tick on GC
  • SIL — Micro Silver available at reduced size

A $395 average risk on NQ becomes ~$40 on a micro. You can take 50 losers in a row on a $2,000 account. That's how you learn without stress.

Real Talk

We show our losses. We have 2 red months out of 25. That's real.
The strategy has edge — 2.07 profit factor on NQ, 56.6% win rate across 2,582 trades. But edge only works if you're still in the game when it hits.
Most people don't blow up because their signals are bad. They blow up because they sized too big for one bad week.
Size small. Let the math work. The P&L takes care of itself.

Ready to trade with us?

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CFTC RULE 4.41 — Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.