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RISK MANAGEMENT 2026-01-08 10 min

Risk management: the 2% rule and why it saves accounts

Position sizing, non-negotiable stop loss, asset correlation.

M
Michele Di Marco
Founder of The Edge Trading Club — Professional Gold Trader

The 2% rule: what it really means

Risking at most 2% of capital per trade means that, even with 10 consecutive stop losses, your account loses less than 20%. It's survival math. Every big fund applies it.

How to size the correct lot on XAUUSD

Base formula: (Capital × Risk%) / (SL distance in pips × pip value). XAUUSD pip value varies by broker — always check. Or let EdgeBot Pro size dynamically for you.

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