> For the complete documentation index, see [llms.txt](https://mt5-m0rpheu5.gitbook.io/mt5.m0rpheu5-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mt5-m0rpheu5.gitbook.io/mt5.m0rpheu5-docs/guides/risk-settings.md).

# Risk Settings

Configure how MT5 Link calculates position sizes and manages risk.

***

## Lot Size

### Fixed Lot

Always use the same lot size for every trade.

* **Example**: 0.01 lots per trade
* **Use when**: You want consistent position sizes regardless of account balance

### Risk-Based (Default)

Calculate lot size based on your account balance and risk percentage.

* **Formula**: `Lot Size = (Account Balance × Risk %) / (Stop Loss in pips × Pip Value)`
* **Use when**: You want position sizes to scale with your account

***

## Risk Percentage

**Default: 1.5%** of account balance per trade.

### How It Works

| Account Balance | Risk % | Risk per Trade |
| --------------- | ------ | -------------- |
| $1,000          | 1.5%   | $15            |
| $5,000          | 1.5%   | $75            |
| $10,000         | 1.5%   | $150           |
| $50,000         | 1.5%   | $750           |

### Changing Risk %

1. Open Settings → **Risk Management**
2. Adjust **Risk per trade** slider or type a value
3. **Recommended range**: 0.5% – 3%
4. Click **Save**

> ⚠ Higher risk = larger positions = bigger potential losses. Start conservative.

***

## Maximum Lot Size

Sets a ceiling on position size regardless of risk calculation.

**Default: 1.0 lot**

### Why It Matters

* Prevents accidentally huge positions on large accounts
* Protects against calculation errors
* Some brokers have maximum lot limits

### Changing Max Lot

1. Open Settings → **Risk Management**
2. Set **Maximum Lot Size**
3. Click **Save**

***

## Stop Loss & Take Profit

MT5 Link uses the SL/TP from your signal provider automatically.

### SL-Only Guard

MT5 Link **refuses** to execute BUY or SELL signals that don't include a Stop Loss. This prevents unprotected trades. Cancel/close signals (which close existing positions) are exempt from this rule.

If you see "No Stop Loss - refusing trade" in the log, add SL to your signal or ask your provider to include it.

### Fallback Defaults

If a signal doesn't include SL/TP:

| Setting       | Default  |
| ------------- | -------- |
| Stop Loss     | 50 pips  |
| Take Profit 1 | 50 pips  |
| Take Profit 2 | 100 pips |
| Take Profit 3 | 150 pips |

### Changing Fallbacks

1. Open Settings → **Risk Management**
2. Set default SL/TP values
3. Click **Save**

***

## TP Unlock System

MT5 Link uses a **TP Unlock** system to lock in profits as price moves in your favor.

### How It Works

When a trade is opened:

* **TP1** acts as a safety trigger — once hit, your stop loss moves to breakeven
* **TP2** is set as the initial take profit target
* Each time a TP level is hit, the stop loss moves up to the previous TP level
* The next TP level becomes the new target

### Example (5 TP levels)

| Event       | Stop Loss Moves To | New TP Target   |
| ----------- | ------------------ | --------------- |
| Trade opens | Initial SL         | TP2             |
| TP1 hit     | Entry (breakeven)  | TP3             |
| TP2 hit     | TP1                | TP4             |
| TP3 hit     | TP2                | TP5             |
| TP4 hit     | TP3                | TP5 (final)     |
| TP5 hit     | TP2                | Position closes |

### Benefits

* **Locks in profits** — each TP hit secures more gains
* **Minimizes risk** — once TP1 is hit, your trade is at breakeven
* **Maximizes upside** — gives the trade room to reach higher TP levels
* **Automatic** — no manual intervention needed

***

## Recommended Starting Values

| Setting | Conservative | Moderate | Aggressive |
| ------- | ------------ | -------- | ---------- |
| Risk %  | 0.5%         | 1.5%     | 3%         |
| Max Lot | 0.1          | 0.5      | 1.0        |

***

## Tips

* **Start conservative** — you can always increase later
* **Test on demo first** — verify position sizes match expectations
* **Monitor the log** — it shows calculated lot size for each trade
* **Adjust monthly** — review performance and adjust risk as needed


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://mt5-m0rpheu5.gitbook.io/mt5.m0rpheu5-docs/guides/risk-settings.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.