Risk Management Quiz

(Select all 3)

Trading with under 1:3R leaves us constantly chasing wins to stay afloat. 1:3 is a good minimum RR to work with.

Position size is determined by the size of your account & the size of your stop loss. So it changes dynamically for each and every trade you take.

Correct! Stops can be moved INTO profit to protect profits on trades

Incorrect! While stops can’t be moved further into loss, stops can be moved INTO profit to protect profits on trades

(select multiple if valid)

Anywhere between 0.3-1% is a good risk per trade figure that allows you to get a reasonable return from your work without risking too much or returning too little.

The best thing you can do with a small account is engrain good habits by forgetting about monetary gain & focusing on the process.

Trading is complicated enough. There’s no reason not to use a position size calculator to work out lot sizes in seconds without risk of human error.

Correct. 1.1R will allow you to make profits, at a very very very slow & stressful rate though. It’s ideal to aim for 3R or more.

Incorrect. 1.1R will allow you to make profits, at a very very very slow & stressful rate though. It’s ideal to aim for 3R or more.

Correct. 3.1R is the minimum required RR ratio to stay profitable at 25% win rate. 3R is a solid minimum RR to work with overall (more is better!)

Incorrect. 3.1R is the minimum required RR ratio to stay profitable at 25% win rate. 3R is a solid minimum RR to work with overall (more is better!)

So long as we follow our risk plan, we will always be okay. Breaking our plan however…can have detrimental outcomes.