First of all, the investment amount must be limited to 50% of the total capital. In other words, at any time, traders should not put more than half of their total capital into the market, and the remaining half is reserves to ensure that they are prepared when the transaction is not smooth or unexpected. The greatest charm of futures lies in "leverage" trading, but excessive leverage will affect the trading mentality. The lever below 3 times is within the normal operating range. You only use 30% of the total funds to trade, and generally don't explode. Regarding the overall fund management, there is a good way to realize it, that is, the total funds are divided into two parts, half of which are placed in futures accounts for trading, and the other half are placed in bank accounts as emergency reserve funds.

Second, the investment in any single market must be limited to 10%- 15% of the total funds. This measure can prevent investors from injecting too much principal into a market, thus avoiding the risk of hanging from a tree.

Third, the maximum loss of any single market must be limited to less than 5% of the total capital. This 5% refers to the biggest loss that the trader will bear if the transaction fails. This is the starting point of the transaction.

Fourth, the total margin invested in any market group must be limited to 20%-25% of the total capital. This is to prevent traders from investing too much principal in a certain market. Because the markets in the same group are often in step, if all the capital positions are injected into different markets in the same group, it will violate the principle of risk diversification.

The fund graphics in Hang Seng Index futures trading generally include the net value of the fund, handling fees, positions, the maximum withdrawal time and other elements. The maximum withdrawal rate of funds is used to assess the risk control ability of traders. Generally speaking, the maximum withdrawal rate cannot exceed 15%, and the withdrawal is too large, so it is difficult to return the capital. The smaller the loss, the less difficult it is to recover. Therefore, a sharp retreat must be avoided. The handling fee accounts for less than 5%, which is used to assess the ability of traders to grasp high probability opportunities. In the futures market, opportunities do not always exist, but reducing trading frequency means reducing trading costs, thus increasing trading life. Positions are used to assess the execution ability of traders. Positions are divided into intra-day positions and overnight positions. Planned intra-day positions, regardless of losses or profits, must be resolutely closed before the afternoon closing, and there should be no luck.

The maximum retracement time is used to evaluate the stability of traders. The shortest the maximum withdrawal time, the better, and it is best not to exceed one month. If there is a monthly loss, it is necessary to suspend trading and study whether the trading strategy is suitable for the recent market characteristics.