Risk Management Is Boring—And That’s Exactly Why It Works

Most of the questions I get are about strategy: “Which pair is hot?”, “What timeframe is best?”, “Is this the right indicator?” Very few people ask, “How do I size my positions so I can survive 20 losing trades in a row?” But that’s the question that actually determines whether you’re still here next year.

My approach is simple but strict: fixed risk per trade based on equity, maximum portfolio-level exposure, and clearly defined invalidation levels where I accept I was wrong. I assume that drawdowns will happen, that surprises will occur, and that my job is not to avoid losses but to make sure no single trade – or single day – can destroy my capital. Excitement is for movies. In trading, what I want is durability.