Risk management for funded accounts: sizing to the rules, not the target

Decide how many full losses in a row you want to survive in a day. Four is a floor. Divide the daily loss limit by that number: on a 5% daily limit that is 1.25% per trade at most; on a 3% limit it is 0.75%. Then halve it for the first week on any new account while you learn how the limits feel.

A 10% maximum loss at 0.5% risk per trade survives twenty full losses with no winners. At 1% it survives ten. Losing streaks of six to eight are ordinary for a 50% win-rate strategy, so 1% is the ceiling and 0.5% is comfortable. The funded account's larger maximum loss (35% to 80% of the funded size, by route) is room for the strategy to breathe, not a reason to size up.

Lot size = risk in dollars ÷ (stop distance in pips × pip value per lot). A $250 risk with a 25 pip stop on a pair worth $10 per pip per lot is 1.0 lot; with a 50 pip stop it is 0.5 lots. Round down. If the result is below the platform's minimum lot, the trade is too big for the account: skip it.

Loss limits are checked on equity, so every open position counts against the daily limit before it is closed. Two open trades at 1% each and a third at 1% means 3% of the day's limit is already spoken for. Cap total open risk, not just risk per trade.

• Personal daily stop at half the firm's daily limit. Hit it, close the platform.
• Weekly stop at roughly a third of the maximum loss. Hit it, trade at half size the following week.
• After three consecutive losses, no new trade for the rest of the session.

VaultX scales a funded account up to eight times as you hit milestones. Keep the same percentage risk as the account grows and the dollar risk grows with it; raising the percentage is how a scaled account dies. Payouts (multiple daily, 80% to you) are the other half of risk management: money withdrawn cannot be lost.