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What do you mean by the 5% (or 10%) allocation rule?

The "5% allocation rule" means that only 5% of our trading account is placed into any one trade. 

For example, if you have an account with $10,000, then the 5% rule means that $500 would be placed into each trade. This also means there is a maximum of 20 positions that can be open at any one time.

This would be simliar for the 10% allocation.

 

 

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