Position sizing and capital management
The biggest factor in long-term trading survival isn't picking winners — it's capital management. Size your positions correctly and no losing streak can end your account.
Our recommended rule
Use a maximum of 0.08 standard lots per $1,000 of account balance.
So a $1,000 account risks at most 0.08 lots per trade; a $5,000 account up to 0.40 lots. Markets can move suddenly for reasons no chart predicts — sizing conservatively keeps you in the game.
Putting it together with signals
- Set the lot size in MT4's Volume field using the rule above.
- Always keep the signal's stop-loss — it defines your worst case.
- Match the signal's risk colour to your account.
You can start with as little as $1 and scale up as your balance grows. Read the full recommended strategy.