How much should you risk per crypto trade? Build a rule you can measure
There is no universal percentage. There is arithmetic: what a losing streak does to an account at each candidate cap, and what recovery the drawdown then demands. Pick the number whose worst week you can actually sit through — then write it down before a trade tests it.
0.25%drawdown 2.0% · recovery needed 2.0%
0.5%drawdown 3.9% · recovery needed 4.1%
1%drawdown 7.7% · recovery needed 8.4%
2%drawdown 14.9% · recovery needed 17.5%
The right cap depends on your strategy's real streaks and the drawdown you can hold without changing behaviour. This table is arithmetic; the tolerance is yours.
State the cap in the free check and every result is measured against it — including the maximum size that fits.
What this covers
—Fixed-fractional risk: each trade risks the same percentage of what remains.
—The streak length is yours to choose. This page makes no claim about how likely any streak is — that depends on your strategy.
—Excludes fees and funding, which make every figure slightly worse.
Formula and assumptions
—Drawdown after n equal losses = 1 − (1 − r)ⁿ.
—Required recovery = drawdown ÷ (1 − drawdown).
—Both compound: risking 1% of what remains is not the same as losing 1% of the start n times.
streak_arithmetic.v1
Worked example
Example — arithmetic, not a recommendation.
Streak8 equal losses
At 0.5% per trade3.9% drawdown · 4.1% recovery
At 1% per trade7.7% drawdown · 8.4% recovery
At 2% per trade14.9% drawdown · 17.5% recovery
Common mistakes
×Copying someone else's percentage. Their strategy's losing streaks and their tolerance are not yours.
×Setting the cap in a calm moment and abandoning it in an urgent one — the rule exists for the urgent one.
×Confusing risk per trade with total open risk. Five 1% positions are 5% if they move together.
×Raising the cap after wins. The streak arithmetic did not change because recent trades worked.
Limitations
This is arithmetic on numbers you supplied. It does not know your broker, your account, or the market. It does not predict price, does not say whether to take a trade, and is not advice. Maximelion is not affiliated with any broker or prop firm, and nothing here is endorsed by one.