%% EXACTLY trends are better than tilt. Tilt is a gambling deal where\ you lose 33.3 % of years profits\ do it again now its 66.6%. Same day, hard head LOL so he does it again , now lost 100% of his years profits. But he had fun + finally figured out he will have to change his kelly or stupid risk....... Not that business is about gambling or stupid risk LOL
Here are some simple risk management techniques I use in copy trading that could be helpful for others: I always decide in advance when I'll exit a trade to limit potential losses. I never invest more than I can comfortably afford to lose. Before copying traders, I always review their risk scores to understand their approach. I use zuluguard to keep my trading account secure. These are my ways of dealing with risk and if anyone wants to add more techniques to this list, please feel free to do so. Happy trading!
Your method of adjusting bets based on current performance (+/- PnL) is a dynamic approach that helps manage your risk actively. After a loss, reducing the nominal amount of your next bet (using the remaining bankroll to calculate the 20% bet size) is a sound way to limit further losses.
Totally agree with your strategy, especially the part about not investing more than you can afford to lose that’s probably the best trading advice ever. Also, setting clear exit points ahead of time is key for keeping losses in check and taking the emotion out of trading decisions.
Look there are a lot of things to be considered for risk management. So, I'd suggest creating rules for yourself and trading based on those rules. You should never ever under any circumstances break your own rules! You can start with simple rules like not trading over an hour a day. Never use this amount of leverage, Take this amount of days off if you hit a huge stop-loss or stop-out. Always use take-profit and stop-loss. The list can go on.
I always set stop losses in my trades and move my trades to breakeven when conditions for this appear from my trading strategy. Thus, for most trades the chance of getting a loss is reduced to zero.
Risk management isn’t just about limiting losses—it’s about staying in the game long enough to capitalize on the best opportunities
It is also necessary to minimize non-trading risks on forex, when an important point is choosing a reliable broker for trading. Therefore, when choosing such a company, I paid attention to the presence of regulation (my broker fxopen has an FCA license), a long period of work in the market, minimal spreads and commissions and instant execution of orders.