OmbraRisk per trade and losing streaks
Risk per trade is the amount you are prepared to lose if a trade reaches its stop. Choosing it before you place the trade is one of the simplest habits in trading.
Losing streaks are normal, even for a careful plan. Eight losses in a row is not rare over hundreds of trades. So it helps to ask: how does a streak of eight look at my size?
With a $2,000 drawdown, risking $500 a trade means four losses in a row ends the account. At $250 a trade, eight losses uses the whole drawdown. At $100 a trade, eight losses uses $800 and leaves room to keep following your plan.
Smaller risk per trade does not make a plan better, but it gives the plan time. It also keeps each loss small enough that it is easier to stay calm.
Many traders set risk per trade as a share of the drawdown left, not of the account size, and review it when the drawdown changes.
Write the figure down, size each trade from it, and do not raise it to make back a loss.
Read: position sizing with tick value
Education only. Not advice. Trading futures carries risk of loss; evaluations use simulated accounts.