I’m from Chennai with 5 yrs of experience in trading. My capital is 10 lakhs. Im a intraday trader not a swing trader. I would like to intraday trade only stocks futures using 5 times leverage. What is the ideal Risk % per trade in Intraday trading…? How much percentage I can risk per intraday trade from my total capital 10 lakhs. Pls explain me.
This depends on your system and how many trades you take which directly affects your max dd. 1% can be too high if you take many trades. Crazy high for my systems for example. Win rate does not matter that much. If you have enough trades, then streaks will be part of backtest.
Run your backtest, look at your max DD, assume future max DD is worse ( say 2x - or better look at montecarlo) and size it accordingly. I try to keep past max DD under 15% at system level. This is one ( probably most imp ) risk measure. You can add other constraints as per your risk tolerance ( per day etc). Then backtest with those restrictions and see if you are happy with it,
Also agree that 10L is too little ( if trading full time). Its very imp to be able to compound+futures have high lot size so position sizing will be tough.