The strategy

Your risk per a trade should never exceed 3% per trade. It's better to adjust your risk to 1% or 2%
the lower the better. If you are confident in your trading system then you can lever your risk up to
a maximum of 3%
1% risk of a 100,000 account = 1,000
You should adjust your stop loss so that you never lose more than 1,000$ per a single trade.
If you are a short term trader and you place your stop loss 50 pips below/above your entry point .
50 pips = 1,000$ If you have mini account then may place 10 pips stop loss.
1 pips = 20$
The size of your trade should be adjusted so that you risk 20$/pip. With 20:1 leverage, your trade
size will be 200,000$
If the trade is stopped, you will lose 1,000$ which is 1% of your balance.
This is just an example. Your equity and leverage provided by your broker may differ from this
formula. The most important is to stick to the % risk rule. Never risk too much in one trade. It's a
fatal mistake when a trader lose 2 or 3 trades in a row, then he may be overconfident that his next
trade will be a winning one and he may add more money to this trade. This is how you can blow
out your account in a short time! A disciplined trader will never let his emotions and greed control
his decisions..