Risk Management for EA Trading

Risk First, Profits Second

Automated trading eliminates emotional hesitation, but without disciplined risk controls, market anomalies can lead to catastrophic losses.

1. Limit risk to 1% to 2% of equity per trade

2. Set a hard account-level maximum daily drawdown limit (e.g. 5%)

3. Avoid overlapping correlated pairs (e.g., EURUSD and GBPUSD simultaneously)

4. Always maintain sufficient free margin to absorb drawdown swings

5. Pause automated trading during major economic blackout events (NFP, CPI, rate decisions)

Never trade money you cannot afford to lose

Withdraw profits regularly according to a structured schedule

Treat past performance as statistical guidance, not a profit guarantee