> For the complete documentation index, see [llms.txt](https://hashhedge.gitbook.io/hashhedge-user-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hashhedge.gitbook.io/hashhedge-user-guide/rules/risk-management.md).

# Risk Management: Protecting Your Challenge

You pass a Challenge by reaching the profit target **without** breaching your loss limits. Big wins do not help if one of them takes you past a limit.

Risk management is what keeps you in the game.

{% hint style="warning" %}
There's no time limit, so a flat day is always better than a breached account.
{% endhint %}

## Know your numbers

Open your account dashboard and note two figures: your **daily loss limit** and your **total loss limit** in dollars. Every trade you take should be small compared to them. If you don't know the most you can lose today, you're trading blind.

## Risk a little per trade

Decide in advance how much you're willing to lose on a single trade, and keep it to a **small fraction of your daily loss limit**. Your daily loss limit depends on the challenge type: **5%** of your account size on the Two-stage Challenge, **3%** on the One-stage Challenge (see [Challenge types](/hashhedge-user-guide/start-here/challenge-types.md)). On a Two-stage $25,000 account that is **$1,250**. Risking around $125 per trade leaves room for several trades before you're anywhere near it.

## Always use a Stop Loss

Set a **Stop Loss** on every position so a losing trade closes at a planned amount, not an open-ended one. Place it *before* your liquidation price. See [Liquidation and margin](/hashhedge-user-guide/rules/liquidation.md). Stop Loss isn't mandatory on Hash Hedge, but trading without one is how accounts get breached.

## Keep leverage modest

Higher leverage means a closer liquidation price and faster losses. You can trade up to 1:5, but you don't have to use the maximum. Lower leverage gives your trades room to breathe.

## Watch the daily loss in real time

Your daily loss is **current Equity − Balance at the start of the day**, and **open positions count** toward it. Check it as you trade: don't let an open position quietly push you toward the limit. The limit updates at 00:00–00:10 UTC+4 on a Crypto + TradFi account, and at 08:00–08:10 UTC+4 on a US Stocks one. See [How the daily loss limit is calculated](/hashhedge-user-guide/rules/daily-loss-calculation.md).

## Stop before you're forced to

{% hint style="danger" %}
If you're having a bad day, step away well before the daily limit, not at it. Revenge-trading to "win it back" is the fastest way to fail a Challenge.
{% endhint %}

***

Related: [Daily loss calculation](/hashhedge-user-guide/rules/daily-loss-calculation.md), [Liquidation and margin](/hashhedge-user-guide/rules/liquidation.md), and [Rules, stages and loss limits](/hashhedge-user-guide/rules/challenge-rules.md).


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