Raz Amwal The entire Raz Amwal methodology stands on one rule: no trade risks more than 2% of the total portfolio. It sounds conservative to the point of boredom — which is precisely its power.
Survival math
At a 2% cap, ten consecutive losses — a brutal, rare streak — leave roughly 82% of the portfolio standing. At a 10% cap the same streak leaves only 35%; with no cap at all, one trade can erase everything. Survival is not a slogan; it is the output of multiplication.
Why "of the portfolio", not "of the trade"?
Some systems play games: they say "2% risk" and mean 2% of a position margined at ×50 leverage — an entirely different animal. The honest figure is computed from total portfolio value: on a $10,000 account, the limit is $200 per trade. End of discussion.
Automatic shrinking: the recovery shield
The percentage is computed from the current balance, not the starting one. If the portfolio dips to $9,000, the limit becomes $180 automatically. This shrinkage is what makes the recovery curve mathematically possible: you lose slower as you lose, while reckless systems do the exact opposite — doubling to "win it back", accelerating the end.
The other face: why we never raise the cap for "golden opportunities"
Because a "golden opportunity" is an emotional concept, not a statistical one. The moment you allow yourself one exception, the whole rule collapses; a system that breaks its rule under temptation will break it under panic too. Consistency is the edge — not superhuman cleverness.
Bottom line: nobody controls the market’s direction, but the size of risk in every decision is entirely yours. Guard it with a fixed number, and let compounding work for you instead of against you.