The 3-30-3 Rule: A Simple Risk Framework for Prop Firm Traders
A memorable risk framework that fits on an index card: 3 losses in a row, 30% of daily-loss cap, 3 days off after blowing an account.
Most risk frameworks are too complicated to actually follow under pressure. The 3-30-3 rule fits on an index card and covers 80% of the survival cases.
3 — After 3 losing trades in a row, you stop for 15 minutes. Walk away from the desk. Re-read your trading plan. Resume only if your rules are still valid.
30 — Cap your per-trade risk at 30% of the daily-loss cap. So if your daily-loss is $1,000, your max per-trade loss is $300. This guarantees you can take at least 3 full losses in a day without violating the cap.
3 — After blowing an account, you take 3 full days off before starting a new one. No charts, no Twitter, no 'just checking the market.' Reset your nervous system before you put another fee at risk.
Three numbers. One index card. Print it, tape it to your monitor, follow it for 30 days. The traders we've seen survive their first year almost universally have some variant of this taped somewhere.