💼Risk Management
Your Trading Safety Net
Risk management is the single most important element of successful automated trading. BananaEA includes institution-grade risk tools that protect your capital while letting your edge compound over time.
🚀 Enhanced (v3.11.xx) Advanced risk engine built on €83 K+ verified testing data with < 9 % drawdown. Every calculation statistically validated and integrated with Professional Optimization Sets.
🎯 Core Risk Management Principles
The Golden Rules
Never risk more than you can afford to lose.
Base position size on account balance, not emotion.
Always use stop losses — BananaEA does this automatically.
Verify broker compatibility, especially with prop firms.
Start conservative, then scale as experience grows.
⚠️ Broker Compatibility & Safety
Before trading, confirm that your broker’s specifications (lot size, margin, contract size) are correctly interpreted by the EA.
Broker Risk Levels
🟢 Low-Risk – Standard Brokers
FTMO, IC Markets, OANDA, and most tier-1 brokers
Standard contract specs, fully tested
🟡 Medium-Risk – Verify Compatibility
Regional brokers or smaller prop firms
Run validation on demo before live
🔴 High-Risk – Use Caution
FundedNext and brokers with modified contracts
Use v3.11.xx or later
Test with micro-lots first
Safety Checklist
💰 Risk Methods Explained
BananaEA supports three professional risk models.
1️⃣ Risk Percentage (RISK_PERCENT) — Recommended
RISK_PERCENT) — RecommendedHow it works: risks a fixed % of account equity per trade.
Example: Balance $10 000 → Risk 2 % → $200 max loss → EA auto-calculates lot size.
Advantages ✅ Automatically scales with equity ✅ Professional standard ✅ Consistent exposure & compounding ✅ Simple and adaptive
Suggested Settings
Beginners 0.5 – 1 %
Experienced 1 – 2 %
Professional 2 – 3 %
Maximum 5 % (only for experts)
2️⃣ Fixed Lot (RISK_FIXED_LOT)
RISK_FIXED_LOT)Uses the same lot size for every trade.
Advantages ✅ Simple & predictable ✅ Good for early testing
Disadvantages ❌ Doesn’t scale with balance ❌ Risk varies as account changes
Guidelines
Micro ($500 – 2 K)
0.01
Mini ($2 K – 10 K)
0.10
Standard ($10 K +)
1.00
3️⃣ Fixed Amount (RISK_FIXED_AMOUNT)
RISK_FIXED_AMOUNT)Risks the same currency amount each trade.
Advantages ✅ Consistent $ risk ✅ Easy budgeting
Guidelines
Conservative
$50 – 100
Moderate
$100 – 250
Aggressive
$250 – 500
📊 Risk Calculator
$1 000
$10
$20
$30
$5 000
$50
$100
$150
$10 000
$100
$200
$300
$25 000
$250
$500
$750
$50 000
$500
$1 000
$1 500
Approximate monthly exposure (20 trades): 1 % ≈ 20 % of account · 2 % ≈ 40 % · 3 % ≈ 60 %
📉 Drawdown Management
Understanding Drawdown
A drawdown is a temporary decline from equity peak to trough. Example: €12 000 → €10 800 = 10 % drawdown.
Historical Optimization Ranges
Low Drawdown
< 15 %
8–12 %
2–4 weeks
€75 K + steady
Balanced Growth
16–18 %
10–14 %
3–5 weeks
€80–83 K range
Maximum Profit
18–20 %
12–16 %
4–6 weeks
€83 K +
DAX Specialist
16–20 %
12–16 %
3–5 weeks
DAX optimized
Survival Rules
Expect drawdowns — they’re normal.
Don’t panic — emotion kills strategy.
Stick to plan — consistency wins.
Lower risk if stress rises.
Keep trading — recovery requires activity.
⚙️ Advanced Risk Controls
Maximum Trades (MaxOpenTrades)
MaxOpenTrades)Limits simultaneous positions.
Conservative: 1–2 trades
Aggressive: 3–5 trades
Multiple Trades (AllowMultipleTrades)
AllowMultipleTrades)False (Safer): one direction only
True (Aggressive): buy + sell allowed
Spread Protection (MaxSpread)
MaxSpread)Avoids high-spread conditions.
Majors 2–4 pips
Minors 4–8 pips
Exotics 8–15 pips
📏 Position Sizing Formula
Position Size = (Account Balance × Risk %) ÷ (Stop Loss Value per lot)Last updated