Risk management is the foundation of profitable trading. Whether you're evaluating or already funded, these principles will help you protect your capital and achieve consistent returns.
The most common mistake traders make is taking positions that are too large. A general rule: risk no more than 1-2% of your account on any single trade. This ensures that even if you lose, you have plenty of capital left to continue trading.
Always know where you'll exit before you enter. Define your stop loss level and set it immediately after opening a position. This removes emotion from the equation and protects your account from runaway losses.
VeloPerps supports leverage up to {LEVERAGE_CAP} depending on the asset. Leverage amplifies both gains and losses. Start with lower leverage as you develop your strategy, then increase it as you gain confidence.
On VeloPerps, your max drawdown is limited to 5% from your starting balance. This means if you start with $10,000, your account cannot drop below $9,500. Track your drawdown daily and adjust position sizes accordingly.
Risk management isn't just about numbers; it's also about psychology. By limiting your risk per trade, you reduce emotional stress and make better decisions. Trade with a plan, stick to it, and avoid revenge trading.
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