RISK MANAGEMENT PLAN

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 Risk Management Plan (10 Trades, 1:5 R: R, $100 Account)


Trade-by-Trade Breakdown:

Trade #ResultAccount BalanceRisk (5%)Gain/Loss
1❌$100.00$5.00-$5.00
2❌$95.00$4.75-$4.75
3❌$90.25$4.51-$4.51
4❌$85.74$4.29-$4.29
5✅$81.45 → $102.90+$21.45+$21.45
6✅$102.90 → $128.19+$25.29+$25.29
7✅$128.19 → $160.44+$32.25+$32.25
8✅$160.44 → $200.99+$40.55+$40.55
9✅$200.99 → $251.23+$50.24+$50.24
10❌$251.23 → $238.67-$12.56-$12.56

Final Result:

  • Ending balance: $238.67

  • Total gain: +$138.67

  • Win rate: 50% (5 wins / 10 trades)

  • Still highly profitable

 Why This Works:

Even with 5 wins and 5 losses:

  • The risk is capped every time (5%)

  • The rewards are massive (5× your risk)

  • Even a 50% win rate nearly triples your account

Final Lesson:

This is the power of high R: R and consistent risk management.
It’s not about avoiding losses, it’s about controlling them and letting your winners run.

Forex Monks Company Ltd

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