This page helps you decide whether a trade is allowed to go ahead, at what size, or whether to pass. Fill in the numbers once, then run the checks on the order screen and in your journal before each trade. The 1 to 2% planned loss and the 3x ceiling are house constraints, choices and not a recommended allocation, and the group cap reuses the per-trade limit. The other limits are this manual's choices. Lower figures are always allowed, and so is taking no position.
Keep the planned loss per trade within 1 to 2% of account equity, or lower.
Check: the planned loss in cash, divided by current equity, is 2% or less, and the cash figure is written in the plan.
It is the loss if the stop fills at its price, cost allowance included, so a gap or slippage can make the realised loss larger. Position sizing has the sum.Keep the leverage at 3x or below, on the setting and on the total.
Check: the order-screen setting is 3 or less, and all open position values plus this order, divided by account equity, are 3 or less.
The setting sets how close liquidation sits, and the total shows how large you are next to everything you own. See leverage.Count correlated positions as one trade.
Check: with this position added, positions are grouped by the linked page's working line (same direction with a candle-return correlation above 0.7, or opposite directions below -0.7, over the last 60 candles of your decision timeframe, with any connected set as one group, and all same-direction positions as one group where you have not measured), and each group's planned losses add up to no more than your per-trade limit, 2% at most.
Four trades in coins that move together can stop out as one trade four times the size. Portfolio risk shows how to group them.Keep the total open planned loss at 4% or less.
Check: the planned losses of every open position plus this one, summed across groups, are 4% or less before you place the order.
A cap on the sum limits a bad day when several stops fill together, though a gap can cost more. The same page explains the 4%.Set a pause trigger in R before you trade, and pause and review when cumulative R falls that far from its high.
Check: your journal names the trigger, written before the run (the examples on the linked page use 6R), and shows cumulative R above it, or a written review of the trades since that high.
A run of losses is normal, but a fall that deep is the point to look for broken rules. Expectancy and drawdown works through it.Pass when costs exceed one fifth of the planned loss.
Check: fees on both fills, spread counted once, slippage and funding for the planned hold, divided by the planned loss, come to 0.2 or less, with each part written down.
A tight stop lets costs take most of the loss budget, and passing is a finished decision. See trading costs.Read the estimated liquidation price after sizing, and keep it beyond the stop.
Check: the order ticket shows the estimated liquidation price on the far side of the stop, the gap is written in the plan, and if the stop triggers on last price while liquidation uses mark price, the gap allows for the difference. If the gap is not well beyond the stop, lower the leverage setting. A fast move or a gap can still cross it.
A stop beyond liquidation is not a stop, because the exchange closes the trade first. The liquidation price page explains the check.Set the margin mode to isolated before you confirm.
Check: the order screen reads isolated margin for this position, and any auto-add margin option is off where the form offers one.
Isolated margin limits each position's loss to the margin assigned to it, while cross margin lets one trade draw on the whole wallet balance. This is the manual's choice. Perpetual futures covers both modes.
This page sets no daily loss limit. The sizing page says to stop after a heavy day but names no figure, and none is invented here. To add one, write your own in R before you trade.
A checklist confirms that the work was done. It cannot say whether a setup is any good, where price goes next, or that a stop will fill at its price. These rules matter most in risk and position sizing, and in the stop and size steps of the ending diagonal breakdown.