Risk management
Plan exposure before the entry
Position size should follow the risk budget, not conviction alone.
Start by identifying the point at which the trade idea is no longer valid. The distance between entry and that point helps determine exposure; a larger position does not make the idea stronger.
Consider open positions together. Several trades responding to the same market move can create more concentrated exposure than the trade count suggests.
A stop order does not guarantee a particular execution price. Liquidity, gaps and execution conditions matter in real markets, while simulated execution has its own limitations.
General information only. Draft evaluation parameters are not final terms; this material is not investment advice.