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Risk Management

• Use a minimum of 1:2 Risk to Reward ratio
• Risk a maximum of 2.5% on your conservative account with a reward of 5%
• Therefore with a 50% hit rate, you could still grow your account
• For example $10 000 with a risk of 2.5% with a 50% win rate it would equate to:

($500 x 5 = $2500 profits) – ($250 x 5 = $1250 losses)
= $1250 / 12.5% growth