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 |
|---|---|
| 1 | Risk 0.5–2% of account per trade (1% default). Risk $ = balance x %. |
| 2 | Stop loss on every trade, placed where the setup is invalidated — never moved closer. |
| 3 | Daily loss cap 1–3%; weekly cap 5–6%. Hit the cap = close the platform. |
| 4 | Minimum risk-reward 1:2. No 1:2, no trade. |
| 5 | 3-5-7 rule: 3% open positions, 5% daily, 7% weekly. Conservative: 1.5/2.5/3.5. |
| 6 | 90% rule: assume you start in the losing majority. Prove edge on demo (100+ trades) before scaling. |
| 7 | 0.01 lot = micro = $0.10/pip on EURUSD (100 oz gold: $0.01/pip). Size starts here. |
| 8 | Leverage: treat regulator caps as maximums (30:1 ESMA majors, 20:1 gold). Notional risk ≤ 10–20x equity. |
| 9 | News blackout: no new trades 30 min before/after high-impact releases. Check the calendar first. |
| 10 | Demo = live: same size, same leverage, same risk %, same journaling. |
| 11 | A strategy defines 9 parts: market, timeframe, context, setup, trigger, stop, target, risk, no-trade conditions. |
| 12 | Journal every trade (pair, size, entry, stop, exit, result in R, emotions, broken rules). Review weekly. |
| 13 | Regulated broker only — verify on the regulator's own register (CFTC/NFA, FCA, ESMA, ASIC, SBP/SECP). |
| 14 | Never martingale, grid or average down. Losing streaks are survived by size, not grown by size. |
| 15 | Trade liquid sessions only (London–NY overlap for majors). Skip opens, closes, lunch, weekends. |
| 16 | Size = risk $ ÷ (stop pips x pip value per lot). Round down, always. |
| 17 | Withdraw monthly profits; halve size after 5–6% drawdown until recovery; level up only on new highs. |
| 18 | EAs must encode the same rules: hard stops, risk sizing, daily loss shutdown, news blackout, no martingale. |
| 19 | Verify 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)
| Account | 1% per trade | 0.5% per trade | Daily 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)
| Account | Stop 20 pips | Stop 50 pips | Stop 100 pips | Stop 200 pips |
|---|---|---|---|---|
| $500 | 0.02 | 0.01 | 0.00 | 0.00 |
| $1,000 | 0.05 | 0.02 | 0.01 | 0.00 |
| $2,000 | 0.10 | 0.04 | 0.02 | 0.01 |
| $5,000 | 0.25 | 0.10 | 0.05 | 0.02 |
| $10,000 | 0.50 | 0.20 | 0.10 | 0.05 |
| $25,000 | 1.25 | 0.50 | 0.25 | 0.12 |
| $50,000 | 2.50 | 1.00 | 0.50 | 0.25 |
| $100,000 | 5.00 | 2.00 | 1.00 | 0.50 |
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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