Risk Management Rules for $25,000 Prop Account
Max DD: $1,000, hard breach

1. Core Risk Per Trade
Standard risk: $40–$60 per trade
Exception rule: up to $100 risk only for A+ setups
Hard rule: no trade exceeds $100 risk under any circumstance

2. Daily Loss Limit
Hard daily limit: $300
After hitting limit: trading stops for the day, manual lockout

3. Instruments
MNQ (Micro Nasdaq)
MES (Micro S&P500)
MYM (Micro Dow)
M2K (Micro Russell)

4. Position Sizing Rule
Size is determined by stop loss distance
If required stop exceeds $100 risk → trade is invalid
Maximum exposure: 2 positions total across all instruments

5. Stop Loss Rules
Every trade must have a predefined structural stop loss before entry
Moving stop against position = prohibited
Moving stop to breakeven or profit = allowed

6. Break-Even Rule
After first profit target or +1R move, stop is moved to break-even

7. Adding to Winners (Pyramiding Rule)
Adding to position is allowed only if:
* first position is in profit and at break-even
* structure confirms continuation
Rule for adding:
* new total risk across all adds must never exceed $100 per trade idea

8. Trade Frequency Control
After 2 consecutive losses → mandatory break (minimum 30 min manual lockout)
Max trades per session: 5–7 high-quality setups only