> **Disclaimer:** Educational simulation only — not financial advice. Hypothetical math for paper trading. # XAUUSD Risk Simulator (Study Sheet) *Pair: XAUUSD (fixed) | Account: $10,000 demo | Risk: 0.75% | Stop: 80 points | Session: London killzone | Profile: moderate — Hypothetical* ## Executive Summary **Study Plan:** PAPER-TRADE (demo study only) **Arithmetic status:** Checked under the stated simulation convention For this $10,000 demo scenario, 0.75% is $75 of hypothetical stop risk. An 80-point stop is $80 per lot under the convention below; $75 ÷ $80 = 0.9375, rounded **down** to **0.93 lots** at the 0.01-lot step. This is a worked arithmetic example, not a live-trading instruction or market view. **First practice:** Recalculate the three ladder rows and log demo-observed price movement and spread separately. --- ## 1. Contract Facts (Simulation Basis) | Fact | Value | Study note | |---|---:|---| | Point convention | 1 point = $0.01/oz | Stated simulation assumption | | Contract | 100 oz = 1.0 lot | Used for this arithmetic only | | Dollar value | $1.00/oz move = $100 per 1.0 lot | Implies $1.00 per lot per point | | Stop conversion | 80 points = $0.80/oz = $80 per lot | Basis for the division below | ## 2. Lot-Size Math (Example Simulation Math, NOT advice) | Account | Hypothetical risk | Stop | Hypothetical lots | |---|---:|---:|---:| | $10,000 demo | 0.75% = $75 | 80 points = $80/lot | **0.93 lots** | **Calculation:** $10,000 × 0.0075 = $75 risk. 80 points × $1.00 per point per lot = $80 stop risk per 1.0 lot. $75 ÷ $80 = 0.9375 raw lots; floor(0.9375 × 100) ÷ 100 = **0.93 lots** (round down to 0.01). ## 3. Lot-Size Ladder (Same Account, 3 Stops) | Illustrative stop | Stop risk per lot | Hypothetical lots at $75 risk | |---|---:|---:| | Tight: 50 points | $50 | 1.50 | | Base: 80 points | $80 | **0.93** | | Wide: 120 points | $120 | 0.62 | Alternate stop distances are arithmetic comparisons for this demo worksheet, not suggested stops. ## 4. Session Note (London killzone) “London killzone” is the supplied session label, not evidence of a particular range or spread. Session conditions vary; record the movement and spread actually observed in the demo environment. The 80-point stop is the input scenario, not stop guidance or a signal. ## 5. Spread-Cost Drag (Hypothetical) | Illustrative spread ($/oz) | Cost per trade at 0.93 lots | Study note | |---:|---:|---| | $0.20 | $18.60 | $0.20 × 100 × 0.93 | | $0.40 | $37.20 | $0.40 × 100 × 0.93 | | $1.00 | $93.00 | $1.00 × 100 × 0.93 | These are author-selected spread scenarios, not current quotes or measured fees. Formula: spread in $/oz × 100 oz/lot × lots. Spread drag is shown separately and does not change the stop-risk lot calculation. ## 6. Daily Limits & Circuit Breakers (Simulated) - **Moderate profile scenario:** 2 × $75 = **$150** gross simulated stop-risk ceiling; maximum **2 simulated trades per day**. - These are author-defined educational settings, not financial advice or market standards; they do not change the 0.93-lot position calculation. - Stop logging for the day when either the ceiling or trade-count cap is reached; journal the result. Spread drag is tracked separately. ## 7. Pre-Trade Risk Checklist (All Must Pass in Simulation) - ☐ $75 hypothetical stop risk and the 80-point convention are recorded. - ☐ The 80-point base row shows 0.93 lots after rounding down. - ☐ Demo-observed spread is recorded separately from stop risk. - ☐ The $150 simulated ceiling and 2-trade cap have not been reached. - ☐ A journal line is ready for the scenario, calculation, and observation. ## 8. First Drill Today - In a demo journal, reproduce the $75 ÷ $80 calculation and record the three ladder rows; note observed spread separately without treating these values as a live quote. *Not financial advice. For paper trading and education only. Validate in demo before any capital at risk.*