Capital Protection & Fixed Fractional Risk Governance
beginner
Risk Governance
Institutional-grade doctrine for preserving trading capital through fixed fractional risk control and disciplined exposure governance.
Account Size
3% Risk
Lot Size
Max Trades
$100
$3.00
0.01
1
$250
$7.50
0.01
1–2
$500
$15.00
0.01–0.02
1–2
$1,000
$30.00
0.03
1–2
$2,500
$75.00
0.07–0.08
2–3
$5,000
$150.00
0.15
3–4
$10,000
$300.00
0.30
3–4
Capital Protection & Fixed Fractional Risk Governance
Philosophy Introduction
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Capital preservation is the highest priority in retail FX portfolios
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Longevity is the trader's learning edge
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The market favors process survival over trade accuracy
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Impulse averaging, emotional retaliation trades, unstructured exposure, and correlation stacking are primary causes of retail portfolio failure
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A standardized 3% fractional loss ceiling ensures continuous participation long enough for edge formation
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Discipline is framed as a quantifiable risk governor, not an emotional suggestion
Retail Portfolio Risk Matrix
Fixed 3% maximum risk per signal with position caps:
Account Size → 3% Max Risk → Recommended Lot Size → Max Concurrent Trades
$100 → $3.00 → 0.01 → 1
$250 → $7.50 → 0.01 → 1–2
$500 → $15.00 → 0.01–0.02 → 1–2
$1,000 → $30.00 → 0.03 → 1–2
$2,500 → $75.00 → 0.07–0.08 → 2–3
$5,000 → $150.00 → 0.15 → 3–4
$10,000 → $300.00 → 0.30 → 3–4
Purpose of Position Caps
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Cross-instrument correlation risk containment
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Leverage-based thermal drawdown protection
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Psychological impulse reduction mechanisms
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Slippage risk isolation during volatile periods
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Spread volatility protection during news events
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Portfolio-level risk isolation from individual trade outcomes
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Overexposure prevention during macro economic releases
Copy Trading Risk Governance
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No new positions when floating losses exceed 5% of account equity
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All trades auto-close if account losses reach 10%
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Monthly performance fee: 25% of net monthly profits (auto-deducted by CFI)
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Governance operates at account-equity level, not symbol level
Risk frameworks protect your future portfolio access, not only your present trade.
Golden Kings Education Doctrine
Systematic discipline over emotional trading decisions. Risk frameworks protect future portfolio access.