What percentage of your account should you risk per trade

Updated: 7 November 2026

In short: Usually 0.5–1% of the account, closer to 0.5% at the start. That means if the stop-loss is hit, the account shrinks by no more than 1%. Position size is chosen so the distance to the stop matches that amount.

Example calculation

Account $1,000, risk 1% — $10. Entry at 100, stop at 98 — a $2 distance per unit. Size: 10 / 2 = 5 units. If the stop is hit, the loss is exactly $10.

Why not more

Ten losses in a row at 1% risk cost about 10%. At 5% risk, about 40%. Losing streaks are inevitable, and small risk lets you survive them.

The position size formula

Size = (account × risk %) ÷ distance to the stop. Account $2,000, risk 1% — $20. Entry on ETH at $3,000, stop at $2,940 — a $60 distance. Size = 20 ÷ 60 ≈ 0.33 ETH, i.e. a position of about $1,000. A wider stop means a smaller size and vice versa: the dollar risk stays the same. The position calculator on extremum.kz does it in a second.

Why 1% and not 5%

Losing streaks happen to everyone: five to seven in a row is normal even for a good strategy. At 1% risk, ten losses in a row is −10%, unpleasant but recoverable. At 5% it is −40%, and you need +67% to get back. Small risk is not cowardice; it is how you survive until the strategy shows its edge.

When to risk less

In the first months on a real account — 0.5% while you get used to the emotions. After a losing streak — halve it until you are back on plan. On a trade against the higher trend or before major news. A beginner should not go above 1–2% at all.