Risk Management Plan for $100 in Futures Trading

1. Risk Per Trade

Max risk per trade: 1–2% of total capital.

That means:

1% = $1

2% = $2

This ensures that even after a string of losses, your capital remains intact.

2. Position Sizing

Use position size calculators to determine contract size based on stop-loss and risk amount.

Example:

If you're risking $1 and your stop-loss is 5 ticks, and each tick is worth $0.20, you can only trade 1 micro contract.

3. Stop-Loss Discipline

Always use a stop-loss order.

Predetermine your stop before entering a trade based on:

Market structure

Volatility

Never widen your stop to avoid getting stopped out.

4. Profit Target / Risk-Reward Ratio

Aim for minimum 1:2 risk-reward ratio.

If you risk $1, aim to make at least $2.

This means you can be profitable even with a win rate under 50%.

5. Daily Loss Limit

Max daily loss: 3-5% of account = $3–$5.

If you hit this, stop trading for the day.

6. Weekly Drawdown Limit

Max weekly loss limit: 10% = $10.

If you hit this, take a break and review your trades.

7. Trade Setup Filters

Only take high-probability setups (e.g., breakouts with volume, trend pullbacks, etc.).

Avoid overtrading or chasing the market.

8. Journal Every Trade

Keep track of:

Entry/exit

Setup type

Mistakes

Emotions

Outcome

9. Adjust as Account Grows

As your account grows, your risk per trade grows with it.

E.g., $200 account = $2–$4 risk per trade.

10. Psychology Rules

Avoid revenge trading.

Stay calm; small accounts require extra discipline.

It's okay to not trade every day.