Risk management rules to avoid disqualification

Risk management is not a theory, it is a list of rules you apply without negotiating.

Rule 1: a fixed, low risk per trade

Set a risk per trade as a percentage of your capital (often 0.5% to 1% during a challenge) and never deviate. A risk calculator gives you the exact position size in seconds — that is what Altiora's built-in calculator is for.

Rule 2: cap your total exposure

Do not stack too many open positions at once. Two correlated trades (two USD pairs, say) often amount to one big trade. Count aggregate risk, not risk trade by trade.

Rule 3: respect the daily loss

Translate the prop firm's daily loss into a maximum number of losing trades. If you risk 1% per trade and the limit is 4%, you get four losses before you stop. Know that in advance.

Rule 4: never move your stop

The stop goes in before entry and never retreats. Moving a stop to "give the trade a chance" is the fastest way to turn a small planned loss into an uncontrolled one.

Rule 5: journal everything

An unmeasured rule is not a rule. For every trade, record whether you respected your risk. The method is detailed in our complete trading journal guide.

Applied together, these rules are what separate funded traders from those who start over. For the full context, read why most traders fail.