Unit 2 · Level 2 · Risk Management
Boss: Risk gauntlet
Sizing, the 1% rule, risk:reward, and your own brain. This boss guards the most valuable knowledge in the app. Most people who lose money trading lost it by not knowing THIS unit.
Free to play. No ads, no token, no account needed to start.
What you get asked
Account $20,000, 1% rule, stop 4% below entry. Maximum position size?
Max loss $200 ÷ 4% stop distance = $5,000 position. The formula, cold and automatic.
Assemble the complete trade plan, in order
Levels → R:R → size → execute. Four steps that contain everything you've learned in 26 lessons.
Trader A: 70% win rate, risks 20% per trade. Trader B: 40% win rate, 1% risk at 1:3 R:R. A year later, who's likely still trading?
A brilliant strategy with lethal sizing is still lethal. B's boring math compounds forever. Boring is the goal.
Boss math: your account drops 20%. What percentage GAIN do you now need just to get back to even?
From 80 back to 100 is a 25% climb. The deeper the hole, the crueler the math: a 50% loss needs a 100% recovery. This asymmetry is the entire case for defense.
THE question. What is the actual job of a trader?
BOSS DEFEATED! 🏆 You now know what took most surviving traders years and real losses to learn: the job is defense. League 2's remaining units and your graduation mission await. Formi salutes you. 🐜🫡
The rest of this unit
Position sizing, the 1% rule, risk:reward, and defeating your own brain. The unit that keeps accounts alive.