Entry cap: 25% of total seed
• Leverage × entry size is kept within a combined 25%
• At 1% each that allows 25 entries, at 5% each only 5 — it forces a limit on putting everything in at once
Stop-loss cap: 3% of total seed
• Fixing each loss within 3% lets the account withstand consecutive failures
• Example) Seed of one million won → maximum entry of two hundred fifty thousand won, maximum loss of thirty thousand won
Why it is needed
• The entry cap is the wall that stops the liquidation price from threatening the whole account
• The loss size must be set at 3% first, because position size (sizing) is worked backward from it
Check
• Has today's total entry stayed within 25% of the seed?
• Has a single stop-loss ever exceeded 3%?
Once the limits are set first, there is no room left for impulse trades.
Have you set, as numbers, the maximum daily entry amount and the stop-loss limit for your current account?