Risk Management — the only thing that keeps you alive

Most retail traders don't lose because their entries are bad. They lose because they risk too much per trade and one bad streak wipes them out.

The 1% rule

Never risk more than 1% of your account on a single trade. On €1,000 that's €10 max loss. On €10,000 it's €100. The percentage stays constant — your account changes, your euro risk changes with it.

Why 1%? Math. To go from 50% drawdown back to break-even, you need a 100% gain. To recover from 80% drawdown, you need a 400% gain. Drawdown compounds against you.

Position sizing formula

Lot size = (Account × Risk%) / (Stop distance × Pip value)

• Account €5,000
• Risk = 1% = €50
• SL distance = 30 pips on EUR/USD
• Pip value = €10 per standard lot
• Lot = 50 / (30 × 10) = 0.17 lots

Sanders does this calculation automatically. You set your risk %, the bot scales lot size to match.

Daily loss limit

Even with proper sizing, bad days happen. Set a daily loss limit:

• 3% in a day = stop trading. Walk away. Tomorrow.
• 3 losses in a row = stop trading. Reset emotionally before the next setup.
• Sanders enforces this server-side via the daily lock feature

The R-multiple system

Don't think in dollars or pips. Think in R (your risk per trade).

• Win 1.5R = +1.5% account (if 1% risk)
• Lose 1R = -1% account
• Net +0.5R per trade = +0.5% per trade × 5 trades/week = +2.5% week × 52 = ~+250%/year (compounded)