Every experienced trader knows these rules. Accounts still blow up because knowing is not enforcing. Automate them.
1. Fixed fractional risk per trade
Risk the same percentage (0.5–2%) on every trade. Position size from the stop distance — see our risk calculator.
2. Hard daily loss cutoff
After losing a set amount in a day, stop. No exceptions. This is the rule prop firms enforce for you — enforce it on yourself first.
3. Maximum open exposure
Cap total risk across all open positions (e.g. 4%). Correlated pairs (EURUSD + GBPUSD) count as one bet at reduced diversification.
4. Always a stop-loss, placed at order time
A mental stop is not a stop. Attach it to the order so a connection drop cannot orphan the position.
5. No averaging into losers
Martingale recovers a hundred small losses and then deletes the account once. If a strategy needs it to be profitable, the strategy is not profitable.
6. News blackout for pending strategies
Spreads triple and slippage explodes around top-tier releases. Automated filters step aside mechanically.
7. Weekly review, monthly rebaseline
Log every trade. If maximum drawdown grows beyond backtest expectations, cut size in half and investigate.
Software never gets tired, angry or hopeful. That is the entire case for automation-first risk control, and it is the design philosophy behind Apex Drawdown Zero: the drawdown guardian enforces rules 1, 2, 3 and 4 at the platform level.