Trading Evolution
Free Course

Free risk management course for traders

Six lessons on the part of trading that decides whether you are still in the game next year: how much to risk, where to put the stop, what leverage really means and how to stop a bad day from becoming a bad month.

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Risk Management

Risk management is the only part of trading that you fully control. Entries and exits depend on the market; the size of a position, the place of a stop and the amount you accept to lose in a day depend only on you. Every lesson here is built on simple formulas that you can check with a calculator.

The examples use futures contracts and round numbers, labelled as hypothetical. They show how the calculations work; they are not recommendations for any account size or market.

Risk Foundations

Six lessons with formulas and worked examples: risk per trade, risk-reward and break-even win rate, stop placement, leverage and margin, daily loss limits, drawdown and recovery.

Module 1 · Sizing each trade

Risk Management · Lesson 1 of 4 · Beginner · 9 min readRisk per Trade: How Much Should You Risk on One Trade?Choose a risk per trade, measure its effect on a losing streak and convert it into a position size.Read →Risk Management · Lesson 2 of 4 · Beginner · 9 min readRisk-Reward Ratio and Break-Even Win Rate ExplainedCalculate the win rate a risk-reward ratio requires and the expectancy of a method, costs included.Read →Risk Management · Lesson 3 of 4 · Intermediate · 10 min readWhere to Place a Stop-Loss: Structure, Volatility and TimePlace a stop where the trade idea is invalidated, check it against volatility and size the position from it.Read →

Module 2 · Limits that protect the account

Risk Management · Lesson 4 of 4 · Beginner · 9 min readLeverage and Margin in Futures: What They Really MeanCalculate the notional value of a futures position and the real leverage of an account.Read →

Free tools to apply these rules

  • Futures position size calculatorTurns a stop in ticks or points into a number of contracts for the risk you choose, using official tick values.
  • Trading journalLog your trades in your browser and import exports from 12 platforms.
  • Free backtesterTest a rule-based strategy in your browser, on public data series or your own NinjaTrader exports.

Frequently asked questions

Is this risk management course free?

Yes. All lessons are public, with no sign-up. The position size calculator, backtester and trading journal linked from the lessons are free as well.

Do I need a large account to apply these rules?

No. The rules are percentages and ratios, so they work at any size. Micro futures exist precisely to let smaller accounts size positions in finer steps.

Will risk management make my strategy profitable?

No. It cannot turn a losing method into a winning one. It limits how much a losing period costs, which gives you the time to find out whether your method works.

Written with the help of AI tools, then checked against the sources listed and our methodology. Report an error and we will correct it. Methodology · Editorial policy · Report an error

Educational content. These indicators are not investment advice and guarantee no result. Futures trading involves a risk of loss that can exceed the initial investment. Terms of use · Disclaimers