How Much Should You Risk Per Trade in a Prop Challenge?
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There is one number that decides whether you pass: your risk per trade.
The simple rule
Risk 0.5% to 1% of your account on each trade. On models with a 3% daily limit, stay near 0.5%.
| Account | 0.5% risk | 1% risk |
|---|---|---|
| $6,000 | $30 | $60 |
| $25,000 | $125 | $250 |
| $50,000 | $250 | $500 |
| $100,000 | $500 | $1,000 |
Why so small?
Losing runs happen to everyone. See what a run of losses costs on a 3% daily limit:
| Losses in a row | At 0.5% | At 1% | At 2% |
|---|---|---|---|
| 3 | 1.5% | 3% (limit hit) | 6% |
| 5 | 2.5% | 5% | 10% |
At 2% risk, two losses end the day on a 3% limit account.
How to set your size
- Decide your risk in dollars.
- Measure your stop loss in pips.
- Set your lot size so that the stop equals your risk.
Always start from the stop. Never choose the lot size first.
Open trades add up
Three trades at 1% each are 3% of risk. If they are all on USD pairs, they can all lose together. Count them as one big trade.
How long will it take?
Say you risk 0.5% and aim to make 1% when you win, and you win half of your trades. Over 20 trades you make about 5%. That is Phase 2 of a Two Step, with very little stress.
Small risk feels slow. It is the quickest way to pass, because you only need to pass once.
Read how to pass a challenge next.