I look at this differently
There is risk per trade at the time of trade entry using initial stop
compared to
Risk per trade when a protective stop is advanced with a winning trade
and
there is total composite risk of all positions held
and
there is highly correlated risk.
I may hold five to eight positions at any given time
But, they may be entirely uncorrelated such as a portfolio of short grains in Europe, long a grain in Canada, stock index in Japan, Sugar in London, Copper in New York and interest rate in Chicago
My max initial risk per trade is 70 basis points - and I try to reduce this to 35 basis points within a week
My max risk on highly correlated trades is 200 BPs (e.g., Bonds and Notes long or Beans and Meal short) and that is composite initial risk which does not happen very often
The real risk belongs to stock swing or position traders because in times of extreme volatility due to a news event that can be ALL ONE TRADE
My max initial risk per trade is 70 basis points - and I try to reduce this to 35 basis points wB
I am more concerned about risk per trade anERY