Risk Management
Risk management for indicator-based strategies
Indicators are only one part of the puzzle. Learn how risk per trade and position sizing affect your results.
Many traders focus on finding the “perfect” indicator but ignore the other half of the equation – risk. Even the best tools cannot save a strategy that risks too much per trade or keeps trading through drawdown.
1. Fix your risk per trade
A common guideline is 0.5–1% per trade for most accounts. The goal is to survive a normal losing streak without damaging your capital or your mindset.
2. Respect a daily or weekly max loss
Decide in advance how much you are willing to lose in a day or week before walking away. This protects you from revenge trading when a setup doesn't work.
3. Let indicators standardise, not randomise
Using indicators like the A.K Pro Trader's Toolkit with clear rules helps you filter low-quality trades and keep position sizing consistent. This is what turns a strategy into a repeatable process rather than a guess.