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The 1% Risk Rule in Crypto Trading
Published 2026-06-18 · Kaizen Kyoto Capital
The 1% risk rule is the foundation of the Kaizen Risk Framework: each trade risks at most 1% of the capital allocated to that specific system, never 1% of your entire account on a single idea.
Why 1% per trade matters
A string of losses is inevitable in any strategy. Risking 1% per trade means ten consecutive losses draw down roughly 10% of that system's allocation, painful but survivable. Risking 5% per trade can erase half the allocation in the same scenario.
Allocation comes first
Before any signal, subscribers define how much capital each system receives (for example, 25% Bitcoin Sentinel, 20% Ethereum Oracle). The 1% rule applies within that slice, keeping portfolio-level risk controlled.
Required before live signals
Kaizen subscribers complete the Risk Framework setup in the dashboard before accessing live signals. This ensures every client understands position sizing before execution.
Read more in our guide on systematic crypto trading.
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