Bankroll Management on Catapult — The Foundation of Every Strategy

With 0% house edge on direction, the only way to lose your entire bankroll long-term is to go broke before the mathematics rescues you. Bankroll management is not a strategy — it is the prerequisite for any strategy to function.

The rule: never risk more than 2% of your total trading bankroll on any single session. At 2% risk per trade, you can lose 50 consecutive trades and still have capital left to trade. At 20% risk per trade, 10 losses end you. GBM’s variance guarantees losing streaks of 10–20 or more will occur — the question is whether you survive them.

What ‘2% risk’ means practically: if your trading bankroll is $1,000, your maximum position on any single session is $20 at 1x leverage. At 5x leverage, your position size should be $4 to keep risk at $20. This feels uncomfortably small to most beginners. That discomfort is the correct feeling — it means you are sizing properly.

The psychology of correct sizing: when your position is sized at 2%, a losing trade registers as a minor inconvenience, not a catastrophe. This keeps you from making emotional decisions. When your position is 20% of your bankroll, a losing trade triggers fear and revenge trading — the two behaviors that destroy accounts faster than any bad strategy.

Leverage amplifies risk proportionally. A 10x leveraged position that moves against you by 10% costs 100% of that position. The formula: risk in dollars = position size × leverage × adverse move percentage. Always calculate this before entering. If the number makes you uncomfortable, reduce the position size.

Building your bankroll: start with the minimum deposit and trade at the smallest available position sizes for 30 days. This is not about making money — it is about building the habit of disciplined sizing. After 30 days of disciplined trading, evaluate your performance. Only add capital after you have demonstrated you can follow the 2% rule consistently.

The only exception to the 2% rule: there is no exception. Conviction is not a reason to size up. ‘I am very confident this chart will go up’ has been the last thought of every blown account. GBM is random. Your conviction about a random variable is not information. Size correctly, every time, without exception.