Module 4 : Risk Strategy

The SureShot 1:2 Risk Model

Trading is a game of math, not luck. This is the exact mathematical model our AI uses to stay profitable even if we lose 50% of our trades.

Position Sizing: The 1%-2% Rule

The fastest way to blow your trading account is to put all your money into a single trade. Professional traders treat capital protection as their number one priority. You cannot make money tomorrow if you lose everything today.

The golden rule of Risk Management is the 1% Rule. This means that on any single trade, if your Stop Loss gets hit, you should only lose 1% to 2% of your TOTAL account balance.

Example: If your total trading account has $1,000, you should only risk losing $10 to $20 per trade. This means you could be wrong 50 times in a row before going broke.

Please note: "Risking 1%" does NOT mean you only buy $10 worth of Bitcoin. You can buy $500 worth of Bitcoin, as long as your Stop Loss is placed tightly enough so that if it hits, your actual loss is only $10.


Calculating Take Profits and Stop Losses (1:2 R:R)

SureShot Trade operates exclusively on a 1:2 Risk to Reward (R:R) ratio. This is the secret math formula that removes the need for "luck".

The Math of Winning by Losing

Let's pretend you take 10 trades using our signals. You have a terrible week and you lose 6 trades, and only win 4 trades (A 40% Win Rate).

Outcome Result per trade Total Math
6 Losses You lost $10 per trade -$60
4 Wins You won $20 per trade (1:2 R:R) +$80
Final Balance Even with a 40% win rate... +$20 in Profit!

This is why you must NEVER move your Stop Loss further down when a trade goes against you, and you must NEVER close a trade early before it hits the Take Profit target. Sticking to the math is the only way to win long-term.


The Psychology of Trading

Trading is 20% technical analysis and 80% psychology. The human brain is not wired for trading. When we see red numbers, we panic and sell at the bottom. When we see green numbers, we get greedy and buy at the top (FOMO).

Accepting the Loss

A Stop Loss is not a punishment. It is an insurance policy. When a Stop Loss hits, it simply means the market condition changed, and the trade setup was invalidated. You must learn to take a loss without emotion. Move on to the next signal. Do not try to "revenge trade" to win the money back instantly.

"To become a profitable trader, you must stop trying to be right on every trade, and start trying to be disciplined with your risk."
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