You’ve just spent twelve articles learning the most important skill in day trading. Not chart reading. Not finding setups. Risk management — the thing that determines whether you’re still trading six months from now or staring at an empty account wondering what went wrong.
But here’s the problem with learning risk management across twelve separate articles: when you’re in the heat of a trade, you don’t have time to re-read a 4,000-word guide on position sizing. You need the rule. Right now. On your screen.
That’s what this article is.
Think of this as the final exam review sheet for everything you’ve learned in Module 6 of our Beginner’s Guide series. Every rule, every formula, every checklist — pulled from Articles The #1 Rule for Survival through When to Sit Out and condensed into a single, printable risk management cheat sheet you can tape next to your monitor.
We’re not teaching new concepts here. We’re organizing the ones you already know into a quick-reference system you can use every single trading day. If any rule feels unfamiliar, we’ve linked back to the full article where it’s explained in depth.
Fair warning: this article is dense by design. It’s a reference document, not a narrative. Bookmark it. Print it. Come back to it whenever you need a refresher. Our team still reviews rules like these before every trading session, even after years of experience. The moment you think you’ve outgrown your risk rules is usually the moment the market reminds you why they exist.
Why You Need a Risk Management Cheat Sheet
Here’s the reality of day trading: roughly 72% of day traders ended a recent year with financial losses, according to FINRA data. And among the roughly 28% who didn’t lose money, only a small fraction earned enough to call it a living. The single biggest differentiator between those groups wasn’t strategy, stock selection, or timing. It was risk management.
But knowing risk management and applying risk management under pressure are two very different things. When you’re watching a stock rip in the wrong direction and your P&L is flashing red, your brain doesn’t calmly retrieve the position sizing formula from memory. It panics. It rationalizes. It says, “Just hold a little longer.”
A cheat sheet removes the need to think in those moments. The rules are written down, pre-committed, and non-negotiable. You don’t decide in real time whether to honor your stop-loss. You decided that before the market opened, when you were calm and rational. The cheat sheet is your calm, rational self giving instructions to your future, emotional self.
As Mark Douglas wrote in Trading in the Zone, the best traders operate from a framework of pre-defined rules because they understand that decisions made under emotional pressure are almost always worse than decisions made in advance.
That’s what we’re building here.
The Loss Recovery Table: Why Small Losses Are Everything
Before we get to the rules, we need to burn one piece of math into your brain. This table explains why every rule on this cheat sheet exists:
| Account Loss | Gain Required to Break Even |
|---|---|
| 5% | 5.3% |
| 10% | 11.1% |
| 15% | 17.6% |
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100.0% |
| 75% | 300.0% |
| 90% | 900.0% |
Look at that table carefully. A 10% loss is manageable — you need an 11% gain, which is very doable over a few good trading days. But a 50% loss? You need to double your remaining capital just to get back to where you started. And a 75% drawdown requires a 300% gain to recover — a feat most professional traders couldn’t pull off in a year.
This is the single most important reason risk management exists. The math of losses is asymmetric — losses always hurt more than equivalent gains help. Every rule that follows is designed to keep you in the left column of that table, where recovery is quick and realistic.
We explore this math in full detail in our guide on understanding drawdowns.
Rule Category 1: Per-Trade Risk Rules
These rules govern how much you risk on every individual trade. They’re your first line of defense.
Rule 1: The 1% Rule Never risk more than 1% of your total account on any single trade. For a $25,000 account, that means your maximum loss per trade is $250. For a $10,000 account, it’s $100.
This is the foundational rule of day trading risk management. It ensures that no single trade — no matter how wrong it goes — can meaningfully damage your account. Even ten consecutive losing trades at 1% risk only puts you down 10%, which is recoverable.
Our full breakdown is in Position Sizing for Beginners.
Rule 2: The Position Sizing Formula Your position size isn’t a gut feeling. It’s calculated:
Shares = Dollar Risk ÷ (Entry Price – Stop-Loss Price)
Worked example: You have a $25,000 account. You’re risking 1% ($250). You want to buy a stock at $50.00 with a stop-loss at $49.00. Your risk per share is $1.00.
$250 ÷ $1.00 = 250 shares.
That’s your position size. Not 500 shares because you “feel good about this one.” Not 100 shares because you’re scared. Exactly 250 shares, because that’s what the math says.
Rule 3: Minimum 2:1 Risk/Reward Ratio Before entering any trade, your potential reward should be at least twice your risk. If you’re risking $1.00 per share to your stop-loss, your target should be at least $2.00 per share above your entry.
Why 2:1? Because with a 2:1 ratio, you only need to win 34% of your trades to break even. That gives you a massive margin of error while you’re still learning. We explain the full math in our risk/reward ratio guide.
Rule 4: Stop-Loss on Every Trade. No Exceptions. Every trade gets a stop-loss before you enter. Not a “mental stop” where you promise yourself you’ll sell if it drops to a certain level. An actual, entered order that will execute automatically.
Mental stops fail because they depend on willpower in the exact moment when willpower is weakest — when you’re watching your position go against you and hoping for a reversal. We cover what a stop-loss is and why it’s non-negotiable, plus how to place stops correctly using technical levels.
Rule 5: Place Stops at Technical Levels, Not Arbitrary Prices Your stop-loss should be placed at a price level where your trade thesis is proven wrong — below a support level, below a moving average, below a pattern’s low. Not at a random price that “feels” like enough room.
Arbitrary stops get hit more often because they’re not based on where the market is likely to react. Technical stops are placed where buyers or sellers are likely to step in, giving your trade the best chance of working.
Rule Category 2: Daily Risk Rules
Per-trade rules keep individual losses small. Daily rules prevent a string of small losses from turning into a devastating day.
Rule 6: Daily Maximum Loss — 3% of Your Account Set a hard daily loss limit. When you’ve lost 3% of your account in a single day, you’re done. Close your platform. No more trades until tomorrow.
Why 3%? Because at the 1% per-trade level, a 3% daily loss means you’ve taken three full stops. If three consecutive trades go against you, the market isn’t cooperating with your strategy today — and continuing to trade is more likely to compound losses than recover them.
Our deep dive: The Daily Max Loss Rule.
Rule 7: Maximum 3 Consecutive Losses — Then Pause If you lose three trades in a row, stop trading for at least 30 minutes — even if you haven’t hit your daily max loss. Three consecutive losses often indicate either a bad market environment or a flawed read on the day’s conditions.
Use the pause to reassess. Is the market choppy? Are you forcing trades that don’t match your plan? Is your emotional state compromised? Often, the answer to at least one of those questions is yes.
Rule 8: Reduce Size After a Loss After a losing trade, many experienced traders cut their next position size by 25-50%. This does two things: it limits the financial damage if the losing streak continues, and it reduces the emotional pressure of the next trade so you can execute clearly.
This is the opposite of what most beginners do. The natural instinct is to increase size after a loss to “make it back” — which is revenge trading, and it’s one of the fastest ways to blow up an account. We explain why in our revenge trading guide.
Rule Category 3: Account-Level Risk Rules
These rules protect your overall account from catastrophic, career-ending drawdowns.
Rule 9: Weekly Maximum Loss — 6% of Your Account If you’ve lost 6% of your account in a single week, stop trading for the rest of the week. A 6% weekly drawdown signals that either market conditions are hostile to your strategy or your execution has broken down. Either way, adding more trades won’t fix it.
Rule 10: Maximum Drawdown Alert — 10% of Your Account If your account drops 10% from its peak equity, switch to paper trading or drastically reduce your size (to minimum shares). A 10% drawdown only requires an 11% gain to recover — that’s manageable. But if you let 10% become 20%, you now need 25%. Let it become 30%, and you need 43%.
The goal isn’t to never draw down. Every trader draws down. The goal is to catch the drawdown early and prevent it from spiraling. Our guide on the three levels of risk management covers how per-trade, daily, and account-level limits work as nested safety nets.
Rule 11: No Correlation Stacking Don’t hold three long positions in three tech stocks at the same time. If the tech sector drops, all three trades lose simultaneously, and your “1% risk per trade” just became 3% risk in a single correlated move.
If you’re trading multiple positions, make sure they’re not all exposed to the same sector, catalyst, or market direction. We cover this in our correlation risk guide.
Rule Category 4: Execution & Technical Rules
These rules govern how you execute, not just what you risk.
Rule 12: Know Your Risk Before You Enter Before clicking buy (or sell short), you must know three numbers: your entry price, your stop-loss price, and your position size. If you can’t state all three, you’re not ready to trade.
This sounds obvious. It is not obvious in practice. In the rush of a fast-moving stock, many beginners enter first and figure out their stop “later.” Later is too late. The risk calculation happens before the entry, every time.
Rule 13: Honor Your Stops — No Moving Them Down Once your stop-loss is set, you are permitted to move it in one direction only: toward your entry (tightening it to lock in profits). You are never permitted to move it away from your entry to “give the trade more room.”
Moving a stop away from your entry is redefining your risk after the trade has gone against you. It’s the single most common rule violation in trading, and it’s responsible for more blown accounts than any bad strategy.
Rule 14: No Adding to Losers If a trade is going against you, do not buy more shares to “average down.” Averaging down turns a controlled, small loss into an uncontrolled, potentially massive loss. If your thesis was wrong at 100 shares, it’s still wrong at 200 shares — you just doubled your exposure to being wrong.
Adding to winners is a legitimate advanced technique. Adding to losers is not. It’s how small problems become account-threatening disasters.
Rule 15: Take Partials on the Way Up When a trade moves in your favor, consider selling a portion of your position — say, half — at your first target. This locks in profit and reduces the emotional pressure of managing the remaining position. Your worst case goes from “full loss” to “smaller loss offset by realized gains.”
Our guide on scaling in and out of positions covers partial profit-taking in detail.
Rule Category 5: Behavioral & Sit-Out Rules
These rules manage the human factor — the emotions and cognitive biases that make risk management hard.
Rule 16: Use the Sit-Out Decision Framework Before trading each day, run through the sit-out checklist from Article #61. If three or more conditions flag — choppy market, low volume, FOMC day, emotional tilt, fatigue, or lack of preparation — don’t trade. Your capital is preserved, and tomorrow is another opportunity.
Rule 17: No Revenge Trading After a loss, you will feel an overwhelming urge to immediately take another trade to “make it back.” This is revenge trading, and it violates almost every rule on this cheat sheet simultaneously — oversizing, ignoring setups, trading emotionally, and often skipping stop-losses.
The rule: after any loss that makes you feel emotional, wait at minimum 5 minutes before your next trade. If the urge to trade is driven by the desire to recover rather than a genuine setup, walk away. We break down the psychology in our revenge trading guide.
Rule 18: Journal Every Trade Write down every trade — entry, exit, size, setup, emotional state, and outcome. Not just the winners. Not just the interesting ones. Every single one.
Your journal is how you find patterns in your mistakes. Without it, you’re relying on memory, which is hopelessly biased toward remembering your wins and forgetting your losses. Over time, your journal becomes the most valuable tool in your toolkit. We cover how to build one in our trading journal guide. For the best journaling platforms, we compare options in our Day Trading Toolkit.
Rule 19: Follow Your Plan, Not the Crowd Social media, chat rooms, and trading communities can be valuable — but not as sources for real-time trade decisions. If you enter a trade because someone in a chat room said “I’m buying this,” you’ve abandoned your own analysis, your own risk parameters, and your own accountability.
Trade your plan. Learn from others on your own time. But in the moment, the only voice that matters is the one coming from your pre-market preparation and your written rules.
Rule 20: Protect Your Mental Capital Your psychological resilience is a finite resource, and it drains with every trade — win or lose. After a long, intense trading session, your decision-making quality declines. Recognize when you’re mentally depleted and stop before you make a costly mistake from fatigue.
This is why most experienced day traders limit their active trading window to 1-3 hours. Not because the market closes, but because their mental sharpness does.
The Red Line Rules: 5 Rules You Never Break
Some rules are flexible guidelines. These are not. These are the hard limits — the ones that, if broken, create the conditions for catastrophic loss. Our team treats these as absolutely non-negotiable, and so should you.
Red Line #1: Always use a stop-loss. On every trade. No exceptions. A trade without a stop-loss has theoretically unlimited downside. One bad trade without a stop can erase weeks or months of careful, disciplined gains.
Red Line #2: Never risk more than 1% per trade. This single rule makes it mathematically almost impossible to blow up your account through normal trading. Even twenty consecutive losses at 1% still leaves you with 82% of your capital.
Red Line #3: When you hit your daily max loss, you’re done for the day. No bargaining, no “just one more.” Close the platform. The market will be there tomorrow.
Red Line #4: Never move a stop-loss further from your entry. The moment you move a stop down on a long trade (or up on a short), you’ve abandoned your risk framework. You’re no longer managing risk — you’re hoping, and hope is the most expensive emotion in trading.
Red Line #5: Never add to a losing position. Averaging down turns a manageable -$200 loss into a potentially devastating -$1,000 loss. If the trade is wrong, cut it. Don’t double the bet on a losing hand.
These five rules aren’t about optimizing performance. They’re about survival. Break any one of them, and you’ve opened the door to the kind of loss that takes weeks or months to recover from — not just financially, but psychologically.
The Expectancy Formula: How to Know If Your System Works
All the rules on this cheat sheet serve one ultimate purpose: keeping you alive long enough for your strategy’s edge to play out. But how do you know if your strategy even has an edge? That’s what the expectancy formula tells you.
Expectancy = (Win Rate × Average Win) − (Loss Rate × Average Loss)
Worked example: Over your last 50 trades, you won 30 and lost 20. Your average winning trade made $200 and your average losing trade lost $120.
- Win Rate = 30/50 = 0.60 (60%)
- Loss Rate = 20/50 = 0.40 (40%)
- Expectancy = (0.60 × $200) − (0.40 × $120) = $120 − $48 = $72 per trade
That’s a positive expectancy — on average, every trade you take produces $72 in profit. Over 50 trades, that’s $3,600. This is the number that tells you whether your combination of win rate and risk/reward actually makes money over time.
A negative expectancy — where the formula produces a number below zero — means your system loses money no matter how well you execute it. If your expectancy is negative, stop trading live and go back to paper trading until you’ve refined your approach.
We cover this concept in depth in our guide on win rate vs. risk/reward and expectancy. But here’s the cheat sheet version of what you need to know:
Breakeven Win Rates by Risk/Reward Ratio:
| Risk/Reward | Breakeven Win Rate |
|---|---|
| 1:1 | 50.0% |
| 1:1.5 | 40.0% |
| 1:2 | 33.3% |
| 1:3 | 25.0% |
| 1:4 | 20.0% |
This table is incredibly powerful. It shows that with a 1:2 risk/reward ratio, you only need to win one out of every three trades to break even. That’s why Rule #3 (minimum 2:1 R:R) exists — it gives you enormous room for error while you’re learning.
How to Use This Cheat Sheet
This article is designed to be a working reference, not a one-time read. Here’s how to get the most from it:
Print it. Or copy the rules into a document and print that. Put it where you can see it during your trading session. When you’re tempted to break a rule, glancing at the sheet is often enough to snap you back.
Customize the numbers. The percentages we’ve listed (1% per trade, 3% daily max, 6% weekly max) are starting points. As you gain experience and develop a track record, you might adjust. But always adjust down, not up. Looser risk limits are not a reward for experience — they’re an invitation for the market to teach you a painful lesson.
Track your compliance. In your trading journal, add a column: “Did I follow all rules today?” On days you answer no, review which rule you broke and why. Patterns in rule violations are more revealing than patterns in your trades.
Review weekly. Once a week, re-read the Red Line Rules. It takes 60 seconds. It’s the cheapest insurance policy in trading.
What’s Next in Your Day Trading Journey
Congratulations — you’ve completed Module 6: Risk Management, the most important module in this entire series. You now have a complete framework for protecting your capital: per-trade limits, daily maximums, account-level safeguards, execution disciplines, behavioral rules, and the math that ties it all together.
But here’s the uncomfortable truth our team learned early: knowing the rules isn’t the hard part. Following them is. And the reason following them is hard has nothing to do with the rules themselves. It has everything to do with the six inches between your ears.
Module 7 takes you into the psychology of trading — the emotional battles, cognitive biases, and mental traps that make even the best risk management plan fail. It starts with the mindset traits that separate surviving traders from statistics.
→ Next Article: The Day Trader’s Mindset: 6 Essential Traits to Win the War in Your Head
Frequently Asked Questions
What is the single most important risk management rule for beginners?
Quick Answer: The 1% rule — never risk more than 1% of your total account on any single trade. It’s the one rule that, if followed religiously, makes it nearly impossible to blow up your account.
With 1% risk per trade, even a brutal streak of ten consecutive losses only puts you down about 10% — painful, but completely recoverable. Without this rule, a single oversized trade that goes wrong can wipe out weeks or months of gains. Every other risk management concept — position sizing, daily max loss, drawdown limits — builds on this foundation. If you only remember one rule from this entire module, make it this one.
Key Takeaway: The 1% rule is the foundation. Everything else is built on top of it.
Should I use the same risk rules for paper trading?
Quick Answer: Yes — paper trading with the same risk rules is the only way to build habits that transfer to live trading. If you ignore risk rules in simulation, you’ll ignore them with real money too.
The entire point of paper trading is to rehearse your complete process, not just test whether a strategy generates winning trades. Practice the position sizing formula, honor your stops, track your daily max loss, and journal every trade. When you transition to live trading, the process should feel identical — the only difference is that real money is on the line. We cover this in our guide on paper trading effectively.
Key Takeaway: Paper trading without risk rules is just screen entertainment. Paper trading with risk rules is genuine preparation.
How do I know if my expectancy is “good enough”?
Quick Answer: Any positive expectancy means your system makes money over time. But as a practical benchmark, an expectancy of $50 or more per trade on a $25,000 account is a reasonable target for beginners.
The absolute dollar amount matters less than the fact that it’s positive. A $20 expectancy on 5 trades per day is $100/day. A $50 expectancy on 3 trades per day is $150/day. What matters is that the number is consistently above zero across a meaningful sample — at least 50-100 trades. If your expectancy is negative, don’t increase volume or change your risk parameters. Fix the strategy first, then scale.
Key Takeaway: Positive expectancy = the system works. Negative expectancy = stop trading live and fix the system.
Can I risk more than 1% per trade once I’m experienced?
Quick Answer: Some experienced traders risk up to 2% per trade, but only after years of consistent profitability and a deep understanding of their strategy’s drawdown profile.
Increasing risk per trade amplifies both gains and losses. At 2% per trade, ten consecutive losses put you down nearly 20% — which requires a 25% gain to recover. That’s significantly harder than recovering from the 10% drawdown you’d face at 1% risk. Most professionals stay at or below 1% precisely because they’ve experienced what happens when risk gets too high. The question isn’t “can I risk more?” It’s “do I need to?” If your system is profitable at 1%, increasing risk adds marginal upside but disproportionate downside.
Key Takeaway: The 1% rule isn’t training wheels — most professionals use it permanently. Increasing risk is rarely worth the additional drawdown exposure.
What’s the difference between the daily max loss and the weekly max loss?
Quick Answer: The daily max loss (3%) prevents a single bad day from spiraling out of control. The weekly max loss (6%) catches situations where multiple bad-but-below-daily-limit days compound into a dangerous drawdown.
Think of these as two layers of the same safety net. You might have three days where you lose 2% each — below your daily limit, so you kept trading each day. But combined, that’s a 6% weekly loss, which signals something systemic is wrong. Maybe the market shifted into a phase that doesn’t suit your strategy, or maybe your execution has degraded. Either way, the weekly limit forces you to pause, review, and recalibrate. We explain the full three-layer system in our three levels of risk guide.
Key Takeaway: Daily limits catch single-day disasters. Weekly limits catch the slow bleeds that daily limits miss.
Why is “never add to a losing position” a Red Line rule?
Quick Answer: Because adding to losers transforms a known, bounded risk ($250 on 250 shares) into an unknown, potentially devastating risk ($500+ on 500 shares) — all while the market is actively telling you your thesis is wrong.
The logic behind averaging down sounds reasonable on the surface: “The stock dropped, so now it’s cheaper — I’ll buy more at a better price.” But this reasoning ignores a critical reality. The stock isn’t just cheaper — it’s cheaper because sellers are overwhelming buyers at the level where you thought buyers would win. Your thesis was wrong. Doubling your bet on a wrong thesis doesn’t make it right. It just doubles the damage when the thesis continues to fail. Professional traders add to winners — positions where the market is confirming their thesis.
Key Takeaway: Averaging down is the single fastest path from a small, manageable loss to an account-threatening loss.
How often should I review and update my risk rules?
Quick Answer: Review your risk rules weekly (60-second scan of the Red Line Rules), and do a thorough re-evaluation monthly using your journal data to check compliance and identify patterns.
Your core rules — the 1% rule, daily max loss, stop-loss discipline — rarely change. What does change is your awareness of which rules you’re most tempted to break. Your monthly review should focus on: which rules did I violate? How often? What triggered the violation? Over time, you’ll discover that your rule violations tend to cluster around specific situations (after a big win, on FOMC days, on Friday afternoons). That pattern recognition lets you build preemptive defenses.
Key Takeaway: The rules don’t change often. Your relationship with them does. Regular review keeps your discipline sharp.
What do I do if I’ve already broken a Red Line rule?
Quick Answer: Stop trading immediately for the rest of the day. Review what happened. Write down what triggered the violation. Then recommit to the rule before your next session.
Beating yourself up won’t help. Neither will pretending it didn’t happen. The most productive response is clinical analysis: What happened? What was I feeling? What would I do differently? Then — and this is the important part — physically write the rule down again. The act of writing reinforces the commitment. Every experienced trader has broken their own rules. The ones who survive are the ones who treated each violation as a learning event, not a habit.
Key Takeaway: Acknowledge it, analyze it, recommit. The goal isn’t perfection — it’s rapid correction after mistakes.
Is there a quick way to calculate position size in my head?
Quick Answer: Yes. Memorize your account’s 1% dollar risk, then divide by the distance between your entry and stop. For a $25,000 account: $250 ÷ risk per share = position size.
To make it even faster, create a personal cheat sheet with pre-calculated sizes at common risk-per-share levels. For a $25,000 account risking 1% ($250): at $0.50 risk/share = 500 shares; at $1.00 = 250 shares; at $2.00 = 125 shares; at $5.00 = 50 shares. Tape this next to your monitor so you never have to calculate during a fast-moving trade. We also have a position size calculator that does this automatically.
Key Takeaway: Pre-calculate your position sizes for common risk levels. In the heat of the moment, you want to look up a number — not do math.
How do these rules change for accounts under $25,000?
Quick Answer: The rules themselves don’t change — the 1% rule and daily max loss apply regardless of account size. What changes is the number of day trades you’re allowed due to the Pattern Day Trader rule.
With an account under $25,000, the PDT rule limits you to three day trades per five-day rolling period in a margin account. This actually helps your risk management by forcing selectivity — you can’t overtrade if the rules only allow three trades. Apply the same 1% rule to your smaller account. On a $5,000 account, that’s $50 max risk per trade. Positions will be smaller, but the discipline is identical. We cover the PDT rule and workarounds in our PDT rule guide.
Key Takeaway: Smaller accounts use the same risk percentages. The PDT rule forces built-in selectivity, which is actually an advantage for beginners.
Disclaimer
The information provided in this article is for educational purposes only and should not be considered financial advice. Day trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results.
For our complete disclaimer, please visit: https://daytradingtoolkit.com/disclaimer/
Article Sources
This cheat sheet synthesizes risk management principles from authoritative financial institutions, established trading educators, and academic research to ensure every rule is grounded in sound methodology.
- SEC — “Day Trading: Your Dollars at Risk” — The SEC’s official investor education page on the risks of day trading, including warnings about margin, leverage, and the high failure rate of retail day traders. SEC Investor Education
- FINRA — Day Trading Rules and Information — FINRA’s authoritative resource on pattern day trading rules, margin requirements, and the financial risks associated with frequent short-term trading. FINRA Day Trading
- Mark Douglas — Trading in the Zone — Published by the New York Institute of Finance, this book is widely regarded as the definitive text on trading psychology and the importance of pre-defined rule sets for managing risk under emotional pressure.
- Van K. Tharp — Trade Your Way to Financial Freedom — Published by McGraw-Hill, Dr. Tharp’s work established expectancy and position sizing as foundational concepts in trading system design, influencing a generation of professional traders and risk managers.
- Investopedia — Position Sizing, Risk/Reward Ratio, Drawdown — Investopedia’s authoritative reference articles on core risk management terminology and methodology, widely used as a standard educational resource. Investopedia: Position Sizing
- CFA Institute — Risk Management Standards — The CFA Institute’s professional standards for risk management, including the widely-adopted principle that professional money managers limit single-position risk to 1-2% of total capital.
