Short answer
Risk a fixed 1–2% of your balance per trade, stop for the day after a set loss (for example 5% of the balance) and never increase the stake to win back losses. At a 55% win rate, a run of 5 losses in a row within 100 trades is more likely than not, so your stake must survive it.
Rule 1: fixed percentage per trade
Pick a percentage and recalculate the stake from your current balance. With $200 and 2%, the stake is $4. If the balance drops to $150, the stake becomes $3. Use the stake size calculator.
At 2% per trade it takes 35 losses in a row to halve the balance. At 10% per trade it takes only 7.
Rule 2: expect losing streaks
Losing streaks are normal, not a sign that something broke. Over 100 trades:
| Losses in a row | Win rate 50% | Win rate 55% | Win rate 60% |
|---|---|---|---|
| 5 | 81.0% | 64.7% | 45.9% |
| 6 | 54.6% | 36.3% | 21.2% |
| 8 | 17.0% | 8.4% | 3.6% |
| 10 | 4.4% | 1.7% | 0.6% |
Chance of at least one streak of that length in 100 trades. Calculated with the losing streak calculator.
Rule 3: a daily stop
Decide before the session: “If I lose X today, I stop.” Write it down. Most account blow-ups happen in a single bad day when someone tries to win everything back.
What not to do
- Martingale (doubling after each loss) turns a normal streak into an empty account. See why martingale fails.
- Trading on money you need for rent, food or debts.
- Trading tired, angry or after a big loss.
FAQ
What is a good daily loss limit?
Many traders stop after losing 5–6% of their balance in a day. The exact number matters less than following it every time.
Should I increase my stake after wins?
Only as your balance grows, by recalculating the same percentage. Never because you feel confident.
How this page was made: drafted with AI assistance from public sources and our own test logs, then checked and edited by the ExpiryLab editorial team. The date above shows the last check. How we test · Editorial policy