At Alpha Capital Group, we understand that trading with a proprietary firm offers unique opportunities and challenges. Our goal is to provide you with the resources and support needed to succeed while ensuring the sustainability of our trading operations. Here’s how you can master risk management within our framework.

Understanding Our Risk Management Rules

Our rules are crafted to help you manage risk effectively and achieve long-term success:

• Daily Loss Limits: We set a maximum allowable loss per day to help you manage risk and prevent significant setbacks. This encourages disciplined trading and helps you maintain a stable account balance.
• Maximum Drawdown: This rule caps the total loss you can incur over a period, ensuring that your account remains viable. It helps you focus on sustainable growth rather than short-term gains.
• Leverage Restrictions: By limiting leverage, we help you avoid excessive risk-taking, which can lead to large losses. This ensures that your trading remains within manageable risk levels.
• Position Size Limits: These restrictions help you manage exposure to market volatility, promoting a balanced approach to trading.

Key Risk Management Strategies

To thrive within our framework, we recommend adopting the following risk management strategies:

1. Set Stop-Loss Orders

Stop-loss orders are essential for limiting potential losses on trades. By setting a predetermined exit point, you can protect your capital and adhere to daily loss limits. This practice helps you stay disciplined and focused on long-term success.

2. Position Sizing

Proper position sizing is crucial to managing risk. Calculate the appropriate size for each trade based on your account balance, risk tolerance, and our rules. This approach prevents overexposure and ensures compliance with position size limits.

ALPHA PRO ACCOUNTS

• $5k = Max 2.5 lots
• $10k = Max 5 lots
• $25k = Max 10 lots
• $50k = Max 20 lots
• $100k = Max 40 lots
• $200k = Max 80 lots
• $300k = Max 120 lots

3. Leverage Management

While leverage can amplify profits, it also increases risk. Use leverage judiciously and in accordance with our restrictions. Avoid over-leveraging, which can lead to significant losses and breach of our rules.

Alpha Pro:

• FX: 1:100
• Indices: 1:20
• Metals: 1:30
• Oil: 1:10

4. Diversification

Diversifying your trades across different assets and markets can reduce risk. By spreading exposure, you can mitigate the impact of adverse movements in any single asset, promoting a more stable trading experience.

5. Adhere to Maximum Drawdown Limits

Monitor your account balance regularly to ensure you stay within the maximum drawdown limits. Implement strategies to recover from drawdowns gradually, rather than attempting to recoup losses quickly, which can lead to further risk.

MAXIMUM TOTAL LOSS: 10% (FROM STARTING BALANCE)

MAXIMUM DAILY LOSS: 5%

6. Regular Performance Reviews

Conduct regular reviews of your trading performance to identify strengths and weaknesses. Analyze past trades to understand what worked and what didn’t, and adjust your strategies accordingly. This continuous improvement is key to long-term success.

The Benefits of Our Risk Management Rules

Our rules are designed to support your trading journey by:

• Encouraging Discipline: By adhering to our rules, you develop a disciplined approach to trading, which is essential for long-term success.
• Promoting Stability: Our rules help you maintain a stable account balance, reducing the risk of significant losses and promoting sustainable growth.
• Enhancing Focus: With clear risk parameters, you can focus on executing your trading strategy effectively, without the distraction of excessive risk-taking.

Conclusion

At Alpha Capital Group, we are committed to supporting your success as a trader. Our risk management rules are designed to protect both your capital and our investments, ensuring a sustainable and rewarding trading experience. By understanding and adhering to these rules, you can navigate the challenges of prop trading and achieve your financial goals. Remember, effective risk management is the cornerstone of successful trading, and we are here to help you every step of the way.