Best Risk Management Practices for Funded People
The people who pass evaluations and keep their funded accounts are not the ones with the best entries. They are the ones who never let a single position ruin their day. Risk management is the only edge that compounds.
Every funded person who has held an account for more than three months will tell you the same thing: the goal is not to make the most money on a winning day. The goal is to lose the least on a losing day. Drawdown limits exist for a reason, and the people who respect them are the ones who survive.
The first rule we recommend is the 1% rule. Never risk more than 1% of your account on a single position. On a ₹10,00,000 funded account, that is ₹10,000 of risk. If your stop-loss is 20 points away on NIFTY futures, that math forces a smaller position size — which is exactly the point.
The second rule is the daily loss cap. Every challenge at DhanFunded has a Daily Drawdown limit (3-4%). Hit that limit and you are out. Smart people set their personal daily stop at half the official limit. If the rule is 4%, you stop at 2%. That margin of safety is what protects you from one bad day turning into a disqualified evaluation.
The third — and least talked about — rule is position concentration. Never have more than two open positions at once during evaluation. We see people open NIFTY long, BANKNIFTY long, and SENSEX long simultaneously, then watch all three move against them on a single news event. Diversification is a myth in correlated Indian indices. Focus on one thing well.
Risk management is boring. That is the entire point. Boring people pass evaluations. Exciting people blow them up.
Ready to apply this in your own evaluation?
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