NQ Long – Conservative Risk (1%)

Account: $100,000 | Risk: 1% ($1,000) | Stop: 40 points below entry at 20,000 | Point value: $20

Max risk calculation: $1,000 ÷ (40 × $20) = $1,000 ÷ $800 = 1.25 contracts → rounded down to 1 contract.
Actual risk: 1 × 40 × $20 = $800 (0.8% of account).

Outcome: Trade hits target at +120 points → +$2,400 (2.4R). Solid reward with controlled downside.

ES Short – Higher Volatility Adjustment

Account: $150,000 | Risk: 1% ($1,500) | Stop: 25 points above entry at 5,800 | Point value: $50

Max risk calculation: $1,500 ÷ (25 × $50) = $1,500 ÷ $1,250 = 1.2 contracts → 1 contract.
Actual risk: 1 × 25 × $50 = $1,250 (0.83% of account).

Outcome: Stop hit → -$1,250 loss. Account drawdown limited; trader lives to trade another day.

Scaling Risk During Drawdown

Account down 10% → now $90,000 | Original risk was 1% ($1,000) | New risk: 0.75% ($675) | Stop: 60 points

Reduced sizing preserves capital during recovery phase. Same setup, lower emotional pressure.