The 1% Rule from a Legendary Trader: Why Professionals Never Lose More Than Their Account Deposit on a Trade.
History
Victor Sperandeo (nicknamed “Trader Pilot”) managed large pools of capital on Wall Street for more than 30 years and became famous for never closing a year at a loss. At the height of severe market crashes (including the 1987 crash), his accounts not only survived but grew.
His main secret lies not in finding perfect entry points, but in the strictest risk management. Sperandeo established a hard-and-fast rule: the risk on any single trade should never exceed 1% (2% at most) of your total capital.
The key lesson for crypto traders
Emotions ruin traders not because they’re stupid, but because they risk too much on a single trade. If you lose 50% of your deposit on a single futures trade, you’ll need to make a 100% profit just to break even. Reduce your leverage and calculate your risks before placing an order, not afterward.
What rules do you follow to trade profitably?