Risk & Money Management

Trading is not just about finding good signals – it’s about managing your risk consistently.
LibertyTrader signals are designed with clear stop-loss (SL) and take-profit (TP) levels, but you are always responsible for choosing how much to risk per trade.

What is Risk Management?

Risk management means deciding how much of your account balance you are willing to risk if a trade goes wrong.

  • Most professional traders risk 0.5% to 1% per trade.

  • This ensures that even a series of losses does not wipe out your account.

👉 Example:

  • Account size = $10,000

  • Risk = 0.5% = $50 maximum loss per trade

Fixed Lot vs. % Risk

In the LibertyTrader EA you can choose:

  • Fixed Lot Size:

    • Example: always trade 0.10 lots, no matter your account size.

    • Simple but not adaptive – risk may be too high or too low.

  • % Risk per Trade (recommended):

    • The EA calculates lot size automatically based on your account balance and stop-loss distance.

    • This keeps your risk consistent as your account grows or shrinks.

Stop-Loss (SL)
  • Every LibertyTrader signal includes a predefined stop-loss.

  • This level protects you from unlimited losses.

  • Never remove the stop-loss – it is your safety net.

Take-Profit (TP)
  • LibertyTrader signals use two profit targets:

    • TP1: Secure the first portion of profit

    • TP2: Capture larger market moves

  • The EA can automatically split positions (e.g., 70% at TP1, 30% at TP2).

Break Even (BE) & Trailing Stop
  • After TP1 is reached, the EA can move your stop-loss to break even (entry price).

  • This locks in a risk-free trade.

  • You can also enable a trailing stop, which follows the price to secure more profits.

Why Money Management Matters

  • Protects your account from large drawdowns

  • Creates consistency – one trade cannot destroy weeks of gains

  • Helps control emotions, since you know your risk before entering

LibertyTrader Recommended Settings

  • Risk per trade: 0.5%

  • Two targets (TP1 + TP2) with automatic break-even after TP1

  • Generous stop-loss to handle volatility (as defined in our signals)

Final Note

Trading is about long-term discipline.
With LibertyTrader signals and the EA’s built-in money management features, you can trade with confidence, knowing your risk is always under control.