Risk management for crypto traders: the 1% rule

How to size positions, survive losing streaks and protect your capital — the habits that matter more than any signal.

Even the best system has losing days. What separates traders who last is risk management.

The 1% rule

Risk at most 1% of your trading capital per trade. With ₹50,000 capital that is ₹500 per idea. If the stop-loss is 2% away, your position size is ₹500 ÷ 2% = ₹25,000 notional.

Survive streaks

• Expect 5–8 losses in a row at some point.
• Stop trading for the day after 3 losses.
• Never add to a losing trade.

Keep a journal

Write down entry, exit, reason and emotion for each trade. Over a month you will see which setups really work for you.