One-Page Forex Trading Rulebook

All 19 guidelines on a single page. Print it, pin it next to your screen, or download it as .txt. This is the "guidelines PDF" version of the full forex trading guidelines.

Forex Trading Guidelines — The One-Page Rulebook

Risk capital warning: 70–90% of retail forex accounts lose money. Trade only what you can afford to lose.

The 19 Rules

#Rule
1Risk 0.5–2% of account per trade (1% default). Risk $ = balance x %.
2Stop loss on every trade, placed where the setup is invalidated — never moved closer.
3Daily loss cap 1–3%; weekly cap 5–6%. Hit the cap = close the platform.
4Minimum risk-reward 1:2. No 1:2, no trade.
53-5-7 rule: 3% open positions, 5% daily, 7% weekly. Conservative: 1.5/2.5/3.5.
690% rule: assume you start in the losing majority. Prove edge on demo (100+ trades) before scaling.
70.01 lot = micro = $0.10/pip on EURUSD (100 oz gold: $0.01/pip). Size starts here.
8Leverage: treat regulator caps as maximums (30:1 ESMA majors, 20:1 gold). Notional risk ≤ 10–20x equity.
9News blackout: no new trades 30 min before/after high-impact releases. Check the calendar first.
10Demo = live: same size, same leverage, same risk %, same journaling.
11A strategy defines 9 parts: market, timeframe, context, setup, trigger, stop, target, risk, no-trade conditions.
12Journal every trade (pair, size, entry, stop, exit, result in R, emotions, broken rules). Review weekly.
13Regulated broker only — verify on the regulator's own register (CFTC/NFA, FCA, ESMA, ASIC, SBP/SECP).
14Never martingale, grid or average down. Losing streaks are survived by size, not grown by size.
15Trade liquid sessions only (London–NY overlap for majors). Skip opens, closes, lunch, weekends.
16Size = risk $ ÷ (stop pips x pip value per lot). Round down, always.
17Withdraw monthly profits; halve size after 5–6% drawdown until recovery; level up only on new highs.
18EAs must encode the same rules: hard stops, risk sizing, daily loss shutdown, news blackout, no martingale.
19Verify forex legality in your country (SBP/SECP in Pakistan, CFTC/NFA in the US, etc.) before depositing.

Risk Money by Account Size (Guidelines 1, 3, 5)

Account1% per trade0.5% per tradeDaily cap 3%Weekly cap 5%3-5-7 max open (3%)
$500$5.00$2.50$15$25$15
$1,000$10.00$5.00$30$50$30
$2,000$20.00$10.00$60$100$60
$5,000$50.00$25.00$150$250$150
$10,000$100.00$50.00$300$500$300
$25,000$250.00$125.00$750$1,250$750
$50,000$500.00$250.00$1,500$2,500$1,500
$100,000$1,000.00$500.00$3,000$5,000$3,000

Max Lots by Stop Distance (EURUSD, $10/pip/lot, 1% risk)

AccountStop 20 pipsStop 50 pipsStop 100 pipsStop 200 pips
$5000.020.010.000.00
$1,0000.050.020.010.00
$2,0000.100.040.020.01
$5,0000.250.100.050.02
$10,0000.500.200.100.05
$25,0001.250.500.250.12
$50,0002.501.000.500.25
$100,0005.002.001.000.50

Lots = risk $ ÷ (stop pips x $10), rounded down. Gold (100 oz/lot): pip value $1.00, so divide all numbers by 10. Use the Lot Size Calculator for exact symbols.

Formulas

Risk $= balance x risk% / 100
Lot size= risk $ ÷ (stop pips x pip value per lot)
Margin per lot= contract size (100,000) ÷ leverage
Blow-up distance= 100 ÷ risk% (consecutive full losses at fixed risk)
Pip value EURUSD= 0.0001 x 100,000 = $10 per lot

Risk warning: Forex trading involves substantial risk of loss and is not suitable for all investors. Between 70% and 90% of retail traders lose money. The guidelines above are educational, not financial advice. Source: algospecial.com/guidelines/

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