Floor 6: The Model
Risk Desk
Risk Desk gives you one trade from the model: an entry, a stop, an account and a risk limit. You dial in the largest position, in steps of 0.01 lot, whose loss at the stop stays inside the limit. It teaches the arithmetic that makes a loss small and known in advance.
Free, with a verified email address. An account saves your progress, and floors and tiers open as you level up.
What it teaches
Position sizing that makes a loss small and boring.
- Size equals the money at risk divided by the stop distance times the pip value.
- Pip value depends on the quote currency and has to be converted when the account is in another currency.
- A pip is 0.01 on yen pairs and 0.0001 on most others.
- Why position sizing is decided by the stop, not by how confident you feel.
How a round plays
- A ticket shows the pair, the trade, the account balance, the risk limit, the entry and the stop.
- Work out the budget: balance times the limit. Then what one 0.01 lot loses at the stop: stop distance in pips times its pip value.
- Dial in the size. Budget divided by that loss, rounded down.
- Early rounds show the loss at the stop as you dial. Later rounds take the meter away and add pairs whose pip value has to be converted to the account currency.
- Lock it in and the desk shows the working line by line. A run is six trades and takes about five minutes.
How it is graded
The answer is arithmetic: the largest size, in steps of 0.01 lot, whose loss at the stop is at or under the limit. A size that risks more than the limit is wrong even if it is close, and a size that leaves much of the planned risk unused is marked down.
The honest note
Sizing does not make a method profitable. It controls how fast a losing method costs you, which is the part of trading a beginner can actually control.