| Control | Reference setting |
|---|---|
| Requested risk / trade (v1.07 tester) | 1.5% |
| Hard planned-risk cap | 1.00% |
| Protective stop | 10.0 pips |
| Sizing reserve | 20 points |
| Prop-Safe daily loss threshold | 0.80% of original/reference balance |
| Daily reset | 6:00 PM U.S. Eastern |
| Floating P/L | Included |
| Winning P/L | Does not enlarge daily risk budget |
Planned risk starts with the stop distance
The reference configuration uses a 10-pip protective stop and calculates position size around the selected risk percentage. A 20-point reserve is included in the sizing logic to avoid treating the requested stop distance as perfectly frictionless. This is planned risk, not a guarantee of the maximum realized loss.
Why realized loss can differ from planned risk
Stops are orders, not insurance contracts. Fast markets, gaps, spread expansion, rejected requests, slippage, liquidity changes, platform outages and broker execution can produce a fill away from the requested level. The risk cap therefore describes the sizing plan under the configured assumptions; it cannot make live execution deterministic.
Prop-Safe uses a fixed sizing reference
Prop-Safe anchors planned position sizing to an original/reference balance. A winning day does not automatically raise that sizing reference. This can make the planned-risk framework more stable when the account balance changes, which is useful for traders evaluating account rules with fixed loss limits.
Compound lets the sizing reference move with balance
Compound uses current balance as the sizing reference. Planned size can therefore increase after gains and decrease after losses. It uses the same underlying EUR/USD M1 trade engine; the key difference is how the balance reference changes position sizing.
The daily-loss guardrail is account-wide
The published Prop-Safe configuration uses a 0.80% daily-loss threshold based on the original/reference balance. Floating P/L is included, and winning P/L does not expand the day's risk budget. The purpose is to restrict new trading when the configured daily boundary is reached rather than allowing profitable trades to create additional risk room.
News and schedule controls are part of risk management
High-impact EUR/USD news protection, Friday-flat behavior and weekend-entry blocking are intended to reduce exposure to known operational windows. They cannot prevent losses from unannounced events, feed failures, abnormal spreads or market gaps. The trader should verify the news feed status and schedule behavior in the intended MT5 environment.
No martingale or grid recovery
Smooth Operator FX does not use martingale or grid recovery to increase exposure after losses. That avoids one specific loss-recovery mechanism, but it does not make the system low-risk by definition. Drawdown, losing streaks and adverse execution remain possible.
What to verify before live or prop-firm use
- Confirm the broker's EUR/USD contract specification, spread and commission.
- Confirm the account's leverage and margin requirements.
- Verify the EA, news feed and notifications on a permitted demo setup.
- Check the exact daily-loss, maximum-loss, news, automation and copy-trading rules for any prop or funded account.
- Keep total account exposure in mind if other manual trades or EAs are running.
- Do not infer future loss limits from a historical backtest.
For the operating sequence, see How It Works. For the historical drawdown figures and test assumptions, review the full MT5 backtest evidence.