Risk Management for Traders: Stake Size, Loss Limits, No Martingale

Fixed stake, always

Risk the same small percentage — typically 1–2% of the account — on every trade regardless of how confident the signal looks.

Confidence scores are probabilities, not certainties. Increasing size on a high-confidence signal converts a normal losing streak into a serious drawdown.

Why martingale fails

Doubling after each loss requires an account that can absorb an unlimited streak, and no account can. Eight consecutive losses is a routine event over a few hundred trades.

Signal AI never recommends martingale or any recovery-by-size scheme. If a service promises to erase losses by increasing stakes, that is the warning sign, not the feature.

Daily limits and review

Set a maximum number of trades and a stop-for-the-day loss figure before the session starts, and close the app when either is hit.

Log every trade with the pair, timeframe, reason and outcome. A week of honest logs usually reveals that most losses came from a small set of repeated situations.

How much should I stake per trade?

1–3% of the balance. Small stakes let you survive normal losing streaks of 5–8 trades in a row.

Example plan by balance

Based on 2% stake and 10% daily stop.