Learn · Risk & Execution

Risk & execution

Risk gets expensive when it is decided inside the trade. These guides focus on the boundaries, sizing, stops, and market conditions that are easier to decide before pressure arrives.

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Trading risk management plan

Define risk before the order: what 1R means, how size relates to invalidation, and how planned risk differs from actual behavior.

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Risk planning

Set the boundaries before the order instead of inventing them inside the trade.

Trading risk management planDefine size, invalidation, exposure, and review rules before entry. The drawdown recovery mathWhy percentage losses and the gains required to recover are not symmetric.

Position & leverage

Understand how oversized exposure changes the cost of being wrong.

How to stop over-leveragingRecognize size drift and cap it before one trade dominates the month.

Stops & loss behavior

Separate a planned invalidation from a stop that moves because the loss hurts.

Why you move your stop lossLoss aversion in real time and the asymmetry created by moving the boundary.

Market-session risk

Recognize when the venue itself changes liquidity, spread, and execution risk.

Trading outside market hoursWhat changes when liquidity thins and spreads widen before and after regular hours.