The percentage of account balance risked on a single trade. Standard recommendation: 0.5-1% for prop firm accounts. At 1% risk on a $100K account, each trade risks $1,000. This gives 5 consecutive los
The percentage of account balance risked on a single trade. Standard recommendation: 0.5-1% for prop firm accounts. At 1% risk on a $100K account, each trade risks $1,000. This gives 5 consecutive losses before breaching a 5% daily drawdown limit. The single most important number in prop trading.