Risk management

Gold points and risk sizing without confusion

Why a move from 4000 to 4005 equals 50 points, and how to convert it into monetary risk.

01

The points rule

In AlQANAAS, every $0.10 move in gold equals one point. A $5 move therefore equals 50 points, not 500.

02

Risk before reward

Define the acceptable monetary loss first, then calculate entry-to-stop distance and the matching lot size. Never distort the stop just to trade larger.

03

Quick example

A $1,000 balance at 1% risk means $10. With a $2 stop distance, one standard lot risks about $200, so the theoretical size is 0.05 lot before broker-specific costs.

Educational content only. It is not a profit promise or a substitute for risk management. Gold can move quickly and capital is at risk.