### “The biggest risk is not taking any risk” – Mark Zuckerberg

Defining your risk is done through your position size and stop loss placement.

- Size of your position + how far your stop is = risk

Example: (1000 – 2% = 20)

$1,000 account size using 2% risk is $20

- $20 is 2% risk on a $1,000 account

The default risk for NextGen Trinity is a total of 2% per trade **but coming from a group of trades** (maximum five trades) risking almost 2% together.

So to find the risk per trade we need to divide $20 (the 2% risk per $1,000 trades) by 5 (number of trades in the group).

- We see the risk for each trade needs to be $4 (20/5 = 4)

So for each individual trade per $1,000 traded the risk is $4 and $20 (2%) for the max of 5 open trades.

- If the stop loss is going to be 10 pips then the position of each is 0.40 ($4 / -10 pips = 0.4)
- If the stop loss is going to be 7 pips then the position of each is 0.57 ($4 / -7 pips = 0.57)

The EA is already set to the correct position sizing for this.

**Risk to Reward Ratios**

The ideal risk to reward ratio for intraday trading (5 minute time frame) is at least 1:1 and ideally closer to 1:1.3 you are golden. Your win ratio needs to be better than 50%.