{"id":642744,"date":"2024-10-09T14:30:12","date_gmt":"2024-10-09T12:30:12","guid":{"rendered":"https:\/\/ftmo.com\/?p=642744"},"modified":"2024-10-09T17:42:17","modified_gmt":"2024-10-09T15:42:17","slug":"strict-risk-management-can-be-the-path-to-success","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/strict-risk-management-can-be-the-path-to-success\/","title":{"rendered":"Strict risk management can be the path to success"},"content":{"rendered":"
In the next part of the series on successful FTMO Traders, we will have a look at a trader who followed strict risk management and money management rules during his trading period, thanks to which he had no problem achieving consistent results.<\/em><\/p>\n A proper approach to trading, where the trader risks the same amount on every trade under any circumstances, shows that he understands the importance of risk management. When a trader is experienced enough and has sufficiently tested this method of opening positions on his strategy, it greatly increases the likelihood that he will be consistently profitable over the long term.<\/p>\n We value this approach in our traders, and the setting of our Trading Objectives<\/a> should guide them in the right direction. Today’s trader is an example of how this approach can actually work.<\/p>\n Thanks to his consistent approach<\/a>, the trader managed to achieve a very interesting return, even though it is clear from the balance curve that it was not as easy as it might look from the final result. The trader had quite a challenging start, as he went into the negative on the second trading day, thanks to a series of losing trades, with a loss of over \u20ac4,500. Fortunately, however, he was able to recover from this streak and limit the risk of higher losses by reducing his position size, which may have provided some psychological relief.<\/p>\n After he managed to get back into profit, his curve was already on an upward trend most of the time and eventually the trader ended up with a profit of over \u20ac22,000, which is a great result for an account size of \u20ac160,000. This was also due to his consistent approach and strict approach to risk management and money management<\/a>, where he opened equally sized positions depending on the instrument.<\/p>\n Considering that the trader started the second day in the black and ended it with the mentioned loss, he came quite close to exceeding the Maximum Daily Loss limit, but in the end he made it through just fine. He had no problem with the Maximum Loss limit at all.<\/p>\n The trader opened a total of 75 positions with a total size of 377 lots, which is an average of around 5 lots per position. However, he actually opened positions of 10 lots on currency pairs and 4 lots on other instruments, which is still okay. Similarly, an average RRR of 1.66 is fine, which combined with a win rate of over 50% (54.67%) should lead to long-term profitability.<\/p>\n<\/a><\/p>\n
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