Adapting Risk for Trading Success

Meet Alex. Alex had a 10000 dollar Forex account. He was not greedy. He was not reckless.

But after five losing trades in a row, something scary happened. His account was

down 6 percent. And his confidence was even lower. Most traders do one of two things

here. They increase risk to win it back. Or they stop trading completely.

Alex did something different. He used a Dynamic Risk Ladder. Here was the rule.

Normal risk was 1 percent per trade. If drawdown reached 5 percent, risk dropped to

0.5 percent. No emotions. Just rules. When his account went down,

his risk automatically went down too. The result was simple. Losses became smaller. Confidence slowly