At Fintokei, risk management is everything. You don’t need to hit home runs—you need to protect your capital, trade with control, and stay in the game long enough to grow. That’s why we monitor maximum risk on open trades.
✅ Recommended risk on open trades
We strongly recommend keeping your risk between 0.5% and 1% of your account equity.
This is the industry standard for sustainable trading and the sweet spot for long-term consistency.
Why it works:
• You can survive losing streaks without breaching the account
• It encourages proper trade planning and realistic take-profits
• It’s what most professional traders actually use
💡 Example:
If you’re trading a $100,000 account, risking 1% means you’re risking $1,000 max.
A few consecutive losses won’t ruin your journey—because you’re playing the long game.
👀 This is all why it is very much in line with who we are looking for. Read more below.
🚨 Maximum allowed risk on open trades: 3%
At Fintokei, our goal is to help you build a sustainable, long-term trading career. To make risk management as simple and transparent as possible, we have updated our risk rules. We no longer use complicated formulas. Instead, our maximum risk rule is based purely on your realised and unrealised loss.
To ensure you are trading safely and not engaging in excessive risk-taking (which we classify as a gambling practice), you must comply with two core conditions:
Realised/unrealised loss on a single TRADE IDEA must not exceed your maximum risk threshold (e.g., 3% of your initial account balance).
Realised/unrealised loss on a GROUP OF OPEN TRADES must not exceed your maximum risk threshold (e.g., 3% of your initial account balance).
If your open positions exceed this limit at any moment, it is considered a breach of our sustainable trading guidelines.
Here is exactly how we define these two categories so you can manage your risk like a pro! 🚀
1. What is a "Trade Idea"?
A Trade Idea is defined as a single trade OR a group of multiple trades that share the same symbol, the same trade direction (e.g., all buy or all sell), and have any time overlap.
How it works: If you open three separate BUY positions on XAUUSD, and their open durations overlap at any point, they are grouped together as one single "Trade Idea".
The Rule: If your total realised or unrealised loss across these overlapping XAUUSD trades exceeds the maximum allowed risk threshold (e.g., 3% of your initial account balance) at any moment, it is considered a breach.
Example: trading idea
You open three long positions on EURUSD at the same time:
first is at -$1,200
second at -$1,000
third at -$900
Total loss: -$3,100. Since it’s the same instrument, same direction, and overlapping timing, this is one trading idea. The limit is exceeded: rule violation.
2. What is a "Group of Open Trades"?
A Group of Open Trades includes ALL your open trades that overlap in time, regardless of the symbol or direction.
How it works: Let's say you open a SELL on XAUUSD, then a BUY on USDJPY, and then a SELL on AUDNZD. Even though they are different instruments, because they are open at the same time, they form a "Group of Open Trades".
The Rule: The total realised/unrealised loss of this entire group cannot exceed your maximum allowed risk threshold.
Example: Group of open trades
You have several open positions:
long EURUSD (-$1,500)
short GBPJPY (-$1,000)
long gold (-$600)
All are open at the same time. Total loss: -$3,100. Even though they are different markets, they form one group of open trades. The limit is exceeded: rule violation.
⚠️ Crucial Details:
Regarding the time overlap definition: We use a union approach, not a conjunction. As shown in the illustration, even though trade X has no direct time overlap with trade Z, both overlap with trade Y, and therefore all three trades form a single group. This principle applies both to a trade idea and to a group of open trades.
Please note: In practice, the outcome of your trades—and therefore your risk compliance—may be affected by slippage, which is a normal part of trading. Additionally, when trading instruments not quoted in your account currency, exchange rate fluctuations may also have an impact, as all evaluations are based on your account currency. Both impacts are solely the trader’s responsibility, and for this reason, we highly recommend using a risk buffer to avoid unnecessary rule breaches.
If you achieve any form of scaling on your account, the scaled amount will be included in your initial account balance for risk calculation purposes.
💡 Pro-Tip: How to stay within the limits
It might sound technical, but complying with this rule is actually super easy!
To stay safe, always use Stop Loss (SL) orders. When you open a trade (or a group of simultaneous trades), simply calculate your SL so that your maximum potential loss—whether realised or unrealised—never exceeds the risk threshold of your initial account balance.
Pay attention when you open multiple trades with time overlap. If these open trades form not only a trade idea but also a group of open trades, then not only the overall group must comply with the rule, but also the individual trade ideas. In such cases, simply distribute SL orders accordingly so that neither condition can be breached. The other alternative is to actively monitor your trades and manage your risk manually.