⚠️ Risk Management: Capital Preservation First

You are not in the business of making money; you are in the business of keeping it.

Advanced indicators don’t just tell you when to enter; they tell you when to be scared. RelicusRoad Pro uses volatility and momentum data to warn you when the market conditions are dangerous, allowing you to adjust your risk profile in real-time.

Using Indicators for Defense

1. ATR (Average True Range)

This is your “Volatility Speedometer.”

• Low ATR: Market is calm. Use tight stops and larger position size.
• High ATR: Market is wild. Use wide stops and smaller position size. Pro Tip: RelicusRoad Pro automatically adjusts Signal Lines based on ATR logic.

2. The Signal Cloud

This is your “Trend Armor.”

• Thick Cloud: Strong Trend. Safe to hold trades longer.
• Thin/Twisting Cloud: Weak Trend. Take profit quickly and reduce risk.

3. Correlation Matrix

Stop doubling your risk by accident. If EURUSD and USDCHF have a -90% Correlation, they move in opposite directions. Buying EURUSD and Selling USDCHF is basically the same trade. You just doubled your risk on the US Dollar. Solution: Check the matrix. If correlated, pick the one best setup, not both.

The 3 Types of Stops

1. The “Hard” Stop (Catastrophe)

Placed at 1.5x ATR behind the Action Level. This is your “In case of emergency, break glass” stop. It saves you from a sudden news spike.

2. The “Soft” Stop (Invalidation)

Placed manually if the reason for the trade fails. Example: You bought because of a Bullish Divergence. The Divergence disappears. Close the trade now. Don’t wait for the Hard Stop.

3. The “Time” Stop (Opportunity Cost)

If you enter a trade and price goes sideways for 3 hours, get out. You paid for a ride, and the bus isn’t moving. Get off and find a moving bus.

Scaling: The Secret Weapon

Scaling Out (Taking Profit)

Don’t be greedy.

• Target 1: Action Level 1. Close 50% of the trade. Move Stop to Breakeven.
• Target 2: Let the runner ride with the Super Trend. Result: You banked cash, removed risk, and still have exposure to a moonshot.

Scaling In (Pyramiding)

Only for advanced traders.

• Scenario: You are long. Price breaks a resistance and retests it as support.
• Action: Add 50% more size to your winning position. Move stop loss up to protect both positions.

Conclusion

Risk management is the steering wheel. Indicators are the GPS. You need both to drive.

Use RelicusRoad Pro not just to find entries, but to calculate the safety of the road ahead.

Trade smarter, not harder. Get RelicusRoad Pro and protect your capital.