Capital Allocation
 

   ● Initial Capital: $2,000

   ● Risk Per Trade: $23.40 (1.17% of account balance)

   ● Weekly Maximum Risk: $46.80 (2.34% of account balance)

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Trade Execution

   
Risk-to-Reward Ratio (R:R):
 

       ● Target a 1:2 to 1:3 risk-to-reward ratio per trade.

       ● Potential profit per trade: $46.80 - $70.20.

  Break-even Management:
 

      ● Move stop loss to entry point once the trade achieves a 1:1 profit (e.g., $23.40).

Number of Trades:

      ● Maximum trades per week: 3.

      ● Maximum losses per week: 2 (leading to a weekly loss cap of $46.80).

Trade Frequency:

      ● If two consecutive losses occur, trading will halt for the week to preserve capital and ensure emotional discipline.

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Profit Goals

Weekly Profit Potential:

● If all 3 trades are successful:

      ○ Total Weekly Gain: $140.40 - $210.60.

      ○ Percentage Return: 7% - 10.5% of initial capital.

Monthly Profit Projection:

     ● Consistently achieving weekly targets can yield 28% - 42% profit per month.

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Risk Management
 

Stop Loss Discipline:

   

    ● Stop loss per trade: $23.40.

    ● Adjust stop loss to break-even once the trade reaches a 1:1 reward.
 

Psychological Stability:
 

    ● If weekly loss limit ($46.80) is reached, take a break from trading until the following week.

    ● No revenge trading or overleveraging to recover losses.

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 Performance Metrics

 Winning Streak:
 

     ● All 3 trades win in a week → $140.40 - $210.60 profit.
 

Losing Streak:
 

     ● 2 consecutive losses in a week → $46.80 loss.
 

Break-Even Scenario:
 

   ● Achieving 1:1 reward before price reverses → no loss, no gain.

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Rules and Discipline
 

   ● Stick to the Plan: Follow the defined risk and reward parameters without deviation.

   ● Emotional Control: Adhere to the maximum loss limit.

   ● Risk-to-Reward Opportunities:

           ○ Only enter trades with a clear setup that meets the 1:2 - 1:3 R:R ratio.

           ○ Avoid overtrading or entering low-probability setups.

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Example Weekly Scenario

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Profitable Week:

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     Trade       Risk        Reward (2x-3x)        Outcome
 

     Trade 1   $23.40   $46.80 - $70.20       Win

     Trade 2   $23.40   $46.80 - $70.20       Win

     Trade 3   $23.40   $46.80 - $70.20       Win

     Total        $70.20   $140.40 - $210.60   Profit
 

Losing Week:
 

Trade        Risk           Reward    Outcome

Trade 1    $23.40            -                  Loss

Trade 2    $23.40            -                  Loss
 

Stop Trading for the Week

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Contingency Plan
 

If Drawdown Occurs:
 

    ● Reduce risk per trade to 0.75% ($15 per trade) until the account recovers.
 

Scaling Up:
 

    ● Gradually increase trade size as the account grows, maintaining a consistent percentage risk.