Risk % in Backtesting can be Tricky Especially for Monte Carlo simulations, using a constant risk percentage per trade isn't ideal. Why? Because in real life, you might not risk more as your account grows. This can mess up the simulation, especially if early big losses happen (which might not be realistic for you). So How Do We Fix This? Fixed Quantity: Trade a set number of shares/contracts instead of a percentage. Fixed Dollar Amount: Risk a specific dollar amount per trade, always. Tiered Risk: Set risk percentages based on account size (e.g., 1% risk up to $10k, then 0.75% for higher amounts). You can also add a maximum risk cap per trade. The Key Make sure your simulation reflects how you'd actually trade. Pick a risk method that suits you and run multiple simulations with different risk models to see a wider range of possible outcomes. This will give you a better idea of the risks and potential rewards of your trading strategy.