Why Risk Management is Everything
Most prop firm challenges are not lost because of a bad strategy , they are lost because of poor risk management. You could have a 70% win rate and still blow a challenge by taking oversized positions during volatile sessions.
The 1% Rule
Risk no more than 1% of your account balance on any single trade. On a $100,000 account, that is $1,000 per trade maximum. This means 10 consecutive losses still leave you within most firms maxdrawdown limits.
Daily Loss Limits
Set a personal daily loss limit of 2-3% , well below the typical 5% firm limit. If you hit your personal limit, close the platform and step away for the day.
Position Sizing
Never scale position size based on confidence. Trade the same size on every setup. Consistent position sizing removes emotion from the equation.