Lumen Futures Blog
Risk & Psychology
Position sizing, win rate, loss limits and the habits that decide whether a trading account survives.
Risk & PsychologyOctober 20, 2026What Is Average True Range (ATR) in Futures Trading?
ATR averages the true range of recent bars, and multiplying that average by the value of one point turns it into dollars per contract — the form in which it can be set against a drawdown line.
- Risk & PsychologyOctober 13, 2026
What Win Rate Do You Need to Be Profitable?
Breakeven win rate is one divided by one plus your average win over your average loss — 50% at 1:1, 33.3% at 2:1, 25% at 3:1 — and costs move every one of those numbers up.
- Risk & PsychologyOctober 1, 2026
What Is Revenge Trading? What the Evidence on Trading After a Loss Actually Shows
Revenge trading means adding size or trades to win back a loss in the same session, and a study of CBOT Treasury bond pit traders measured how much more risk losing traders took that afternoon.
- Risk & PsychologySeptember 12, 2026
Futures Position Sizing: How Many Contracts Can You Actually Hold?
Position size in futures is stop distance in ticks multiplied by tick value, divided into a risk budget — and on a funded account that budget is the published distance to the drawdown line rather than a number you pick.
- Risk & PsychologySeptember 10, 2026
Is Day Trading Gambling? What the Law and the Data Say
US law regulates futures under the Commodity Exchange Act rather than as gaming, but in the two largest published studies of individual day traders, most people lost money.
- Risk & PsychologySeptember 6, 2026
Can You Lose More Than You Invest in Futures? Yes, and Here Is How
Your deposit is not the limit of what you can lose. A gap through your stop can leave the account short, and US rules make you liable for the balance. What that means in practice, and the one account type where it cannot happen.