Blog 
Sep 8, 2025•2 min. read
Risk Management
Trading is a game of probabilities.
No matter your win rate, the odds of losing 10 trades in a row are higher than you think.
Proper risk management is the only way to avoid liquidating your account.
Profitability is simply a net positive relationship between win rate and risk-to-reward ratio (RR).
You can be profitable with a 60% win rate at 1:1RR, just as you can with a 20% win rate at 1:5RR.
Best Risk Percentages
- Risk a fixed amount per trade, based on your win rate
- Live acount: 1-3% of your capital
- Prop firms: 5-10% of max drawdown
On a funded account, your effective capital is the max drawdown, not the full account size.