💡 Note on Risk Methodology Update
Fintokei is currently conducting a Pilot Phase with selected customers to evaluate an alternative way of defining and measuring oversized risk. While our standard policy monitors for spikes crossing 3% risk using SL and VaR analysis, the Pilot Phase participants are testing a 1% maximum loss threshold based on a "Trade Idea" and "Group of Open Trades" methodology.
For a detailed explanation of this assessment model, please refer to our FAQ
Based on our experience, risking between 0.5% and 1% per trade idea is perceived as a safe risk management approach and we would like to strongly recommend to follow this practice to all our traders.
The maximum allowed risk on open trades at any time is set to 3%. 📌
The risk of open trades is calculated based on the StopLosses set by the trader (if applicable) and on the Value at Risk (VaR) analysis in combination with your position sizing, over a specific period or trading session.
You can read more about this rule in this dedicated FAQ article.