Risk Management
Trading Risk Management Tools: Stay In Control Of Every Trade
Great trading isn’t about winning every trade. It’s about making sure the losing ones stay small. Tallyholden gives you simple, powerful risk management tools, and the AI follows them on every single trade.
- Stop loss and take profit on every trade
- Daily loss limits that pause trading automatically
- One click kill switch
Why It Matters
Why Risk Management Matters
Most retail clients lose money trading CFDs. That is the reality this platform is built around, and it is why the tools that keep losses small matter more than the ones that chase wins.
Good risk controls make a real difference. That is why trading risk management tools are built into Tallyholden from the start, not added as an extra.
Toolkit
Your Risk Management Toolkit
Every tool below is built into your account, and the AI follows it on every trade.
| Tool | What It Does | Why It Helps |
|---|---|---|
| Stop Loss | Closes a trade at a set price if it moves against you | Caps the loss on each trade |
| Take Profit | Closes a trade when your target is reached | Locks in gains before they disappear |
| Risk Per Trade | Limits how much of your balance each trade can risk | Stops one bad trade from hurting your account |
| Daily Loss Limit | Pauses trading once losses hit your set amount | Prevents a bad day turning into a bad month |
| Max Open Trades | Caps how many trades run at once | Avoids overexposure |
| Leverage Control | Lets you choose lower leverage than the maximum | Reduces the size of swings |
| Kill Switch | Stops all automated trading in one click | Full control, any time |
| Trade Log | Records why every trade was opened and how it was managed | Lets you review the AI’s decisions instead of guessing |
Position Sizing
How Position Sizing Works
Position sizing means deciding how big each trade should be based on how much you are willing to lose. Many traders follow the 1% rule: never risk more than 1% of their balance on a single trade.
| Example | Value |
|---|---|
| Account Balance | AU$1,000 |
| Risk Per Trade (1%) | AU$10 |
| Distance To Stop Loss | 2% |
| Position Size | AU$500 |
The numbers above are a worked example, not a forecast. Tallyholden does this maths for you: set your risk per trade, and the AI sizes every position to match.
Risk And Reward
Understanding Risk And Reward
Every Tallyholden trade has a planned risk, measured to the stop loss, and a planned reward, measured to the take profit. With a 1:2 risk to reward ratio, you aim to make AU$20 for every AU$10 you risk.
That means you don’t need to win every trade to stay on track. Results are never guaranteed, and costs apply.
Risk Profiles
Choose A Risk Profile That Fits You
Not sure where to start? These example settings are a useful guide.
| Setting | Conservative | Balanced | Active |
|---|---|---|---|
| Risk Per Trade | 0.5% | 1% | 2% |
| Daily Loss Limit | 2% of balance | 3% of balance | 5% of balance |
| Max Open Trades | 2 | 4 | 6 |
| Leverage | Low | Medium | Higher |
| Mode | Signal mode | Signal or Automated | Automated |
These are examples to guide you, not recommendations. Set limits you understand before you switch on automation.
Diversification
Spread Your Risk
Don’t rely on one market. Crypto, forex, gold and shares often react differently to the same news.
Trading a mix, in small sizes, can help smooth out the ups and downs.
Before You Start
Risk Checklist Before You Switch On Automation
Stop Loss Is Set On Every Trade.
Decide your exit before you enter.
Risk Per Trade Is 1% To 2% Or Less.
Small enough that one loss changes nothing.
A Daily Loss Limit Is In Place.
So a bad day pauses instead of snowballing.
Leverage Is Set To A Level You Understand.
If you can’t explain it, lower it.
You Know Where The Kill Switch Is.
One click stops all automated trading.
You Review Your Results At Least Once A Week.
Adjust your settings as you learn what suits you.
Risk Management FAQs
A stop loss, a sensible risk per trade and a daily loss limit. Together, they keep single losses small and stop a bad day from snowballing.
Not always. In fast markets or price gaps, a trade can close at a worse price. This is called slippage.
Yes. You can update your limits any time from your dashboard.
It means never risking more than 1% of your account balance on one trade, so a string of losses doesn’t wipe you out.
Trade With AI, On Your Terms
Create a free account and set your risk limits before your first trade. Nothing trades until your rules are in place.