Trade guide · 4
Risk and sizing
How much to put on each trade, so that no single trade or bad week can do real damage.
Start with a base risk
Choose one fixed share of your account to risk on a full-size trade, for example 1%. Every trade is then a fraction of that, so one loss never hurts much and a run of losses stays manageable.
In CyclesX
Trade signal › Base risk per trade. The trade table shows the suggested risk for the current signal.
Size by entry and grade
Multiply your base risk by the entry share, then by the grade share, and cap the result at your base risk.
| Entry | Entry share | Then by grade |
|---|---|---|
| At the cycle turn | 50% | No grade yet: use 50% |
| Early crossing | 75% | No grade yet: use 75% |
| Standard | 100% | A 100% · B 75% · C 50% |
| Conservative | 100% | A 100% · B 75% · C 50% |
Example. Base risk 1%. A Standard grade B long risks 0.75% of the account. With the stop 2% below entry, the position is 0.75 / 2 = 37.5% of the account.
From risk to position size
- Risk amount = account × risk %.
- Stop distance = entry price minus stop price.
- Position size = risk amount ÷ stop distance.
- If that size is too big for you, the stop is too wide. Wait for a later entry with a closer stop, or skip.
Limits that protect you
- No more than three open trades at once, and no two on markets that move together.
- After three losses in a row, halve your base risk until you have a winning trade.
- Stop for the day or week if you lose more than three times your base risk.
- Never move a stop further away.
- Reward:risk to the FLD target of at least 1:1 for Standard entries.
In CyclesX
Trade signal › Min reward:risk filters FLD target trades below your minimum.