🔑 Risk Control: The Key to Long-Term Success

Hey everyone,

Although our new setups are all live (except USDJPY), it’s important to remember that risk management is still a key factor for long-term success. Even if you are trading different strategies or instruments, many assets can move together if they share the same currency (for example EURUSD and XAUUSD). This correlation can increase your effective exposure and overall risk.

🔑 Key Points:

• Normal Drawdowns: Each strategy is designed to have occasional drawdowns. 1–2 losing trades in a row are completely normal.

• Multiple Strategies Together: Running several setups at once can result in overlapping losses. Example: 3 setups at 1% risk each could mean a 3% daily drawdown if they all lose simultaneously.

• Risk Adjustment:

• If trading multiple strategies → lower the risk per trade (e.g. 0.25–0.5%).

• If you prefer higher risk (e.g. 1% per trade) → select only 1–2 core setups (for example EURUSD + Gold).

• Prop Firm Accounts: These have tighter rules. Think in terms of the overall portfolio, not just individual strategies.

Suggested Approach:

• Evaluate whether it is more suitable for you to operate multiple strategies with reduced risk per trade.

• Alternatively, consider focusing on a smaller selection of high-conviction setups while maintaining a standard risk allocation.

Managing risk wisely is what keeps you in the game and growing consistently.

And remember, if you’d like personalized guidance, we’re happy to arrange 1-on-1 support with our support team to help you set things up properly. https://tradealgorithm.co.uk/support

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