16. Risk & Account Management

• If in doubt, do not enter.
• Give each reversal a maximum of two chances.
• If the reversal fails, wait for continuation.
• DD account:
  • exit at 2R if needed;
  • if price action allows, re-enter.
• Live account:
  • move SL to BE according to the plan;
  • then wait for full TP or BE.
• Early entry makes it easier to protect cost.

16.1 Prop-Firm Risk Sizing

Community insight

• Risk roughly 20% of available drawdown per trade on an evaluation account and 10% on a funded account — halving risk once funded roughly doubles the number of losing trades the account can absorb before it is out. — Afyz — "$10K/Month with Prop Firms", 15:09
• Once a lower-timeframe gap you're trading from gets its own SMT fill confirmation, that gap becomes a true protected level — you can trim or trail your stop loss to it rather than leaving it at the original invalidation. — Garrett — live back-test stream, 44:10
• On evaluation or consistency-restricted accounts, partial at a fixed R and move to break-even rather than holding for the full target — protects progress against a prop firm's consistency rules, even when the setup could support a larger win. — Erik — weekly trade recap, 21:22
• Not every two-stage crack in correlation is rated the same. For lower-probability, more discretionary setups (counter-trend, close-proximity, or otherwise borderline), size down risk and take break-even earlier — rather than either skipping the trade entirely or risking it the same as a high-probability setup. — Garrett — live interactive back-test stream, 46:39

• On an evaluation account, risk roughly 20% of the account’s available drawdown per trade. A $50,000 evaluation with a $2,000 drawdown, for example, risks about $400 per trade — five losing trades before the account is out.
• On a funded account, halve that to roughly 10% of available drawdown per trade, giving twice the runway before the account is out.
• Cap trades per day: stop after one win, or after two losses / two break-evens, rather than continuing to trade the same day.
• Scale by adding more funded accounts at this same per-trade risk, rather than by increasing risk per trade on a single account.

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