🎯 The Lesson
Markets don’t behave the identical each month.
Some months are easy and predictable…
others are unstable, uneven, and stuffed with fakeouts.
Skilled merchants defend their accounts throughout high-volatility intervals through the use of a danger buffer — a security margin constructed into their month-to-month danger plan.
A buffer retains you alive when the market turns into unpredictable.
⚙️ Step 1: What Is a Threat Buffer?
A danger buffer is a portion of your month-to-month danger left unused on goal to deal with surprising volatility.
Instance:
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Month-to-month max danger: 8%
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Threat buffer: 2%
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Precise deliberate utilization: 6%
That 2% acts like an airbag for dangerous weeks.
📊 Step 2: Determine Unstable Months in Advance
Volatility spikes throughout:
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Begin of the yr (January flows)
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Finish of the yr (December skinny liquidity)
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Q1 and Q3 earnings seasons
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Instances of main political occasions
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Inflation releases and charge hikes
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Disaster intervals (banks collapsing, struggle, oil shocks)
Throughout these months, you scale back publicity and defend your steadiness.
🔢 Step 3: Scale back Your Threat Per Commerce Throughout Unstable Months
Regular situations:
Excessive-volatility months:
This mechanically reduces the depth of your drawdowns.
When volatility will increase, your danger decreases — like an computerized stabilizer.
📉 Step 4: Use the “Max Warmth Rule”
Your “warmth” is the overall danger throughout all open trades.
Throughout unstable months, restrict warmth to 3% max, not the standard 6%.
Instance:
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Three trades open
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Every dangers 1%
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Complete warmth = 3% → SAFE
But when volatility is excessive, scale back warmth even additional: 2% max.
Warmth administration protects you from sudden spikes.
🧮 Step 5: Create a Volatility Filter for Entries
Throughout unstable months, replace your entry standards:
✔️ Commerce solely within the route of upper timeframe development
✔️ Keep away from countertrend trades
✔️ Keep away from tight stops
✔️ Keep away from buying and selling inside consolidation
✔️ Keep away from entries inside 30–60 minutes of pink information
Your buffer protects your account —
your filter protects your entries.
🚀 Takeaway
Your buying and selling efficiency shouldn’t be destroyed by regular months.
It’s destroyed by one or two chaotic months the place you used regular danger in irregular markets.
A danger buffer ensures that even when situations get wild, your account stays steady and your fairness curve stays easy.
That is how professionals survive each season — and continue to grow long-term.
📢 Be part of my MQL5 channel for extra buying and selling & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
