Creating a risk management tool for trading forex pairs like XAUUSD, GBPUSD, and USDJPY on lower timeframes (4H and below including 1M) involves several components. The goal is to minimize losses while allowing for the potential to capture gains. Here’s a structured approach to develop a risk management tool:
### 1. Define Position Sizing
**Risk per Trade**: Define the percentage of your total trading capital that you are willing to risk on a


