Risk settings create a defined response when an account reaches a configured loss threshold. They help clients understand the amount placed at risk, the relationship between trade-level and daily limits, and the additional protection they can configure at the platform level.
Account Risk Calculator
Enter an account size to see the illustrative dollar amounts associated with the operating references above.
Illustrative calculations
These are illustrative risk settings, not a guarantee of outcomes or a limit on actual losses.
Why Risk Settings Matter
Risk settings create a defined response when an account reaches a configured loss threshold. They help clients understand the amount placed at risk, the relationship between trade-level and daily limits, and the additional protection they can configure at the platform level.
Normal Risk Per Trade
Normal operation risk is approximately 1% per trade. This is an operating reference, not a promise that every trade will lose or that actual account results will match the reference amount.
Maximum Exceptional Risk Per Trade
Exceptional high-quality opportunities may use up to 2% risk per trade. Risk never exceeds 2% on a single operation, and the maximum is reserved for exceptional situations rather than routine activity.
Daily Loss Logic
The operating model allows no more than two losing trades per day. The theoretical daily loss is approximately 2% when both losing trades use normal risk, or up to 4% when both use the maximum risk. Actual losses may vary with execution and market conditions.
Emergency Protection
The algorithm has an emergency protection limit of 5%. This is an operating safeguard, not a guarantee that losses will stop at an exact amount in every market condition.
Recommended NinjaTrader Configuration
Clients are recommended to configure NinjaTrader with a 5% maximum daily-loss limit. This creates an additional broker or platform protection layer that clients should review and configure according to their account and broker instructions.
What Happens When a Limit Is Reached
When an applicable loss limit is reached, the strategy may stop opening or making further activity available for the account, and the platform or broker may close positions or restrict trading according to its own rules. The exact response depends on the setting, account, broker, connection, timing, and execution conditions. Review the active platform settings and contact the broker when clarification is needed.
When the Strategy Does Not Trade
The strategy may remain inactive when no opportunity meets its criteria, when major news or unsuitable high-volatility conditions are present, or when risk and execution conditions do not support an approved operation. No-trade periods are part of the model and are not a promise of future activity.
Important Risk Disclosure
Trading involves substantial risk, and you may lose part or all of the capital in a brokerage account. The figures on this page are illustrative risk settings and not a guarantee of outcomes, execution, protection, or future performance. Actual results can vary because of liquidity, latency, slippage, gaps, technical issues, broker rules, account configuration, and market conditions. Use only capital you can afford to risk and review the applicable broker and platform disclosures.